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Question
My 30-year fixed rate home loan payments went from $1,400 to $1,700 per month !!?
My loan was sold to chase and now they have raised my monthly payments over $300 per month! (They actually raised it twice.) For years, I paid just $1,400 a month. Now my total mortgage cost is almost 1700 a month! I have a 30-year fixed rate loan (not ARM). They claim the increase is due to underestimating last years taxes, etc. I do not understand finance in enough detail to audit my loan. Who can I ask for help in evaluating my mortgage situation ?? I don't think the two increases were correct or fair. It seems excessive to me. Thanks for any help!
4 months ago - 6 answers
Best Answer
Chosen by Asker
Frequently, home loan payments include amounts for property taxes and/or fire/casualty insurance. The monthly amounts are based on estimates of what the actual amounts for taxes and insurance will be when they come due. Typically, these bills will be paid annually or semi-annually. The amounts over what is needed to pay principal and interest go into what is called an escrow account. The bills are then paid from the escrow account. If the bills are higher than what is in escrow, they are paid anyway and you are billed for the escrow underage. Typically, they will send you a statement showing the collections to and disbursements from escrow, and show the underage and give you the opportunity to pay the underage all at once or by having it add to your monthly payment. An increase 300 dollars a month to account for escrow underages and to assure there are no future underages seems a little large to me. If they had been collecting 100 a month too little, then you would owe them 100 a month more to pay off the past underage plus another 100 dollars a month to keep the account from being under in the future. Not clear how they could miss by that much, but it is possible. Call them and ask them to account for the difference and ask them to send you a written confirmation. It really isn't too hard to understand. Feel free to email me (no charge, no obligation, no nothing...) c/o Yahoo Answers if you need additional info.
by David M
4 months ago
Asker's Rating: 
Other Answers
Ask for a printout of the expenses, and the payment history. Then ask to have the calculation shown.
by FRANK R- 4 months ago
Obviously you have your property taxes escrowed which means you pay some with each payment. One quick way to figure it out is to look at last years tax amount and divide by 12, which gives you a monthly amount. Match that with what was in your payment last year. Now do the same with this years taxes to see if there has been an increase in your property taxes. It's possible. It would mean your taxes have gone up approximately $25 per month over last year.
by alterfemego- 4 months ago
Why don't you have a tax freeze on your property? I thought that was supposed to prevent that from happening!
by Megan- 4 months ago
Taxes went up on your house, and your mortgage servicer received the bill from the county. They paid the taxes for you (so the county won't lien the property). Now, they are billing you the difference spread out over the year. You can have your servicer NOT pay your taxes or insurance for you if you want to pay them directly. Of course, that would mean a big bill due every 6 months. Either way, the taxes are what the taxes are. Best of luck!
by David Beasley- 4 months ago
Have an accountant look over your yearly mortgage and escrow statements from the bank. That would be your best option to do an audit.
by awesthoustonrealtor- 4 months ago