Why did my payments on my mortgage go up?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Why did my payments on my mortgage go up?
I got a letter saying that we are short on our escrow. What does that mean?
Asked on June 14, 2012 under Real Estate Law, Michigan
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
When you buy a home the bank will generally pay the insurance and taxes on the home directly with out your having to do so. When you pay your mortgage every month a portion of that payment is for the insurance and the taxes. When you pay it the bank holds that money for safe keeping and their custody in an acount for your benefit ("escrow"). If the taxes or insurance go up then the bank is entitled to re adjust your payments to get more money to pay those obligations. Call and speak with the lender and ask why. You have the right to do so. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.