Help, my mortgage payment went from $727 to $1148 a month. - I am a teacher and worked very hard to save 20% down-payment for a house and an acre of land. I payed $128,000 for the house and the land 2 years ago. I got a fixed intrest rate of 3.5%. My taxes are roughly $2000 and my insurance is $1386.
Out of the blue my mortgage company increased the amount needed for escrow (as of this moment my escrow is negative $400). I was told by the company that $1148 is my new monthly payment for the remainder of my 30 year mortgage. This makes no sense as increasing my escrow payment by $400 a month is way more then mathematically seems necessary. Is this legal, can my mortgage company arbitrarily demand a huge increase in my escrow payment.Personal Finance
Help, my mortgage payment went from $727 to $1148 a month. - I am a teacher and worked very hard to save 20% down-payment for a house and an acre of land. I payed $128,000 for the house and the land 2 years ago. I got a fixed intrest rate of 3.5%. My taxes are roughly $2000 and my insurance is $1386. Out of the blue my mortgage company increased the amount needed for escrow (as of this moment my escrow is negative $400). I was told by the company that $1148 is my new monthly payment for the remainder of my 30 year mortgage. This makes no sense as increasing my escrow payment by $400 a month is way more then mathematically seems necessary. Is this legal, can my mortgage company arbitrarily demand a huge increase in my escrow payment.
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