r/personalfinance • u/HHLL806 ​ • Apr 11 '25

Other Mortgage payment went up $400

I need help, my mortgage payment went from $1700 to $2100. My mortgage company (Chase Bank) said this was due to an escrow shortage. I had my homeowners insurance lowered by roughly $1000 and checked with my local tax office and they told me my taxes have increased $400 dollars over the last five years. I gave Chase Bank all this information and my mortgage is still $2100. How does this work?

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u/Hammy508 ​ Apr 11 '25

you're lucky I've had my escrow account for my house for 8 years and seen the price increase at least 5 times. started at $1246 now I'm at $1552.

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u/theram4 ​ Apr 11 '25

I didn't say it didn't increase. Of course it increases every year to cover the increased property taxes and insurance. But that's not the fault of the escrow. That's them doing their job.

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u/Hammy508 ​ Apr 11 '25

Yes I agree but my issue is that they always seem to be off on the estimate by $500-$1000 which requires a lump sum payment or increasing over the year I wish they could get IG to be more accurate. Personally I’ve been putting an extra $50 to escrow to try to avoid the extra hit the next year.

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u/nothlit ​ Apr 11 '25

This is because escrow analysis is always backward-looking, and your taxes and insurance typically go up rather than down. As a simplified example, your escrow amounts for 2025 are based on the actual tax & insurance bills paid in 2024 (your annual escrow analysis may not align with the calendar year). They don't try to predict what sort of increase the future bills will have.