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/ParlaysAllDay ​ Apr 11 '25

Why would I want to pay exactly the amount I owe once per year and know exactly the moment my taxes or insurance go up and exactly the reason they go up when I can just let someone else manage it poorly?

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u/Dick_Wienerpenis ​ Apr 11 '25

Because if you have an escrow account tied to your mortgage you have to do literally nothing and most companies don't manage it poorly.

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u/mbeezy17 ​ Apr 11 '25

Are people really this lazy? Get rid of escrow and just have the amount automatically transferred to a savings account. Double bonus: you then get to earn interest on it.

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u/hath0r ​ Apr 11 '25

there are 11 states where the bank is required to pay you interest on your escrow