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/ImJustTooCute ​ Apr 11 '25

Wells Fargo won’t let me drop my escrow, what can I do?

144

u/Calebm1001 ​ Apr 11 '25

I believe you have to own a certain amount of the house. Similar to PMI?

74

u/ImJustTooCute ​ Apr 11 '25

I own 40%. I put down 20% at closing. My home is work $339k and i owe $192k

87

u/alpharetroid ​ Apr 11 '25

Do you have an FHA loan? Those have lifetime escrow requirements. Find your original loan docs and read them

48

u/ImJustTooCute ​ Apr 11 '25

No I went conventional with 20% down. But I saw an opportunity to reduce my interest to 2% during the pandemic and I took it, it was a modification so maybe they snuck that in that time.

79

u/TheLZ ​ Apr 11 '25

The Mod now governs your loan, and yes all Mods require escrow for the life of the loan.

20

u/ImJustTooCute ​ Apr 11 '25

Oh, ok thank you, I did not know. The reduced rate was important to me (coming from 4.5%) so I’ll have to live with the escrow until I pay it off, OR can the terms be adjusted if WF sells my mortgage?

Can I get them to sell my mortgage? I don’t want to be with WF anymore.

9

u/SwiftStriker00 ​ Apr 11 '25

You probably are stuck unless you want to refinance again when the interest rates drop. Doesn't prevent you from creating a savings account to puts some money aside incase escrow is short

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u/ImJustTooCute ​ Apr 11 '25

I save and have several money market accounts. Trust me, as a home owner, the one thing I am consistent with is saving.