Submitted by **[deleted]** t3_10ppx0h
in **personalfinance**

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**BouncyEgg**
t1_j6lsge4 wrote

> 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.

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**MapsAndRivers**
t1_j6ltv79 wrote

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.

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**BlazinAzn38**
t1_j6lu7d1 wrote

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

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**MapsAndRivers**
t1_j6lv8wj wrote

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

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**DontEatConcrete**
t1_j6mxr1f wrote

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.

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