BouncyEgg t1_j6lsge4 wrote on January 31, 2023 at 5:47 AM

> My monthly payment went up $400 a month

So your previous payment was made up of escrow in addition to loan payment.

As in:

Monthly payment = Loan payment + Escrow

So when your monthly payment went up by 400, you're paying the previous escrow amount and plus an additional 400.

So your calculation of:

$400x12

is definitely not going to "add up to over $11,000" because you are missing the original escrow payments.

You should be doing:

(Original Escrow payment + 400 ) * 12

That will be around the 11K.

MapsAndRivers t1_j6ltv79 wrote on January 31, 2023 at 6:02 AM

My monthly escrow payment is about $940 a month so about $11,280 of just escrow. Including actual payment it’s about $20,400 a year. So is it correct? I’m sorry I’m so ignorant on this topic.

BlazinAzn38 t1_j6lu7d1 wrote on January 31, 2023 at 6:06 AM

What was your escrow shortage last year in total? And what’s your tax and insurance look like for this year?

MapsAndRivers t1_j6lv8wj wrote on January 31, 2023 at 6:18 AM

My taxes this year + insurance are about $5,500-$5,600 total. They told me my escrow shortage last year was $2,400.

DontEatConcrete t1_j6mxr1f wrote on January 31, 2023 at 1:58 PM

Okay so you need $5600/12 and that’s your escrow payment. However you also need to catch up on that $2400.

If the lender lent you money (they do implicitly to cover the shortage), but you’re at 900+/month it seems they are requiring you pay back the overage over six (?) months instead of 12.