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Alex Esquire
Alex Esquire, Attorney at Law
Category: Real Estate Law
Satisfied Customers: 19700
Experience:  Experienced Licensed Attorney / Real Estate Law Mentor
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Are mortgage companies allowed by law to raise your mortgage

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Are mortgage companies allowed by law to raise your mortgage monthly payment up to any amount they choose?
JA: What steps have they taken so far? Have they prepared or filed any paperwork?
Customer: Yes, my mortgage was raised by an extra $343.83 after the first year. i continued to make my monthly payments plus the extra for a few months but never saw the amounts credited to my account, i stopped paying the extra but continued making my regular monthly mortgage payments to the company.
JA: Where is the property located?
Customer: In Missouri.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: No.

Hello. My name is Alex.

Thank you for your question.

I will be happy to provide you with information you are seeking for educational purposes only.

What was the increase for?

Customer: replied 14 days ago.
Monthly mortgage was what I was told.
Customer: replied 14 days ago.
No, but thank you.

Did you contact the mortgage company customer service to inquire about the increase in monthly payment?

Customer: replied 14 days ago.
I did but it is still not clear to me why it was raised to that amount.

What was the explanation provided by the mortgage company?

Customer: replied 14 days ago.
On my statements it was added to my monthly mortgage payment as an increase which became my new monthly payment according to the statements.

Thank you for your follow up.

When you contact mortgage company, what explanation for this increase did mortgage company give you?

Customer: replied 14 days ago.
I do not remember word for word exactly what the company said, but one thing I do know is that the large amount was very unreasonable and wrong to charge a person.

Thank you for your follow up.

Generally, a mortgage company has to provide an explanation for any increases in the amount of a monthly mortgage payments.

In some cases such increases can be dues to the interest rate going up, with variable apr loan or because the taxes or insurance costs have went up and have to be put in escrow every month.

In any case, generally, the first step would be to contact mortgage lender and to inquire as to the reason of the increase and if the increase is doesn't appear proper or valid to dispute such increase with the mortgage lender.

I wish you the best of luck!

Customer: replied 13 days ago.
Thank you for your help.

Please let me know if you have any related follow up question

If you do not, please accept and positively rate my answer, so that I can receive credit for my work.

Thank you and good luck!

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