Can a new mortgage company raise the original fixed rate mortgage amount, not including the escrow?
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Can a new mortgage company raise the original fixed rate mortgage amount, not including the escrow?
If I pay the shortage escrow in full, my fix rate mortgage still goes up 105.00 from my original contract. Is that legal?
Asked on April 30, 2019 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
A mortgage is a contract: both parties are bound by it, and neither side may change it unilaterally, or without the consent of the other. They may not legally increase your mortgage unless the terms of the mortgage itself state that they can. Otherwise, your mortgage payment is locked into what you agreed to pay. If they believe that they have the rifht to increase your mortgage ask them to explain why and point to the provisions of the mortgage allowing this, if they can.
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