My Mortgage payment was increased 4 months into a fixed loan

[Tracey J Shanklin]

I didn't go through a traditional lender as I found a fabulous non-profit organization that I'd dealt with years before. They offered fixed interest rate, no down payment, no PMI, minimal closing costs! I'd already made 4-5 payments at the agreed upon payment when I signed the documents. However, the lender cited a miscalculation in the cost of the insurance of my building. All the proper protocols were adhered to prior to signing the documents, i.e. inspections. There were increases prior to final documents being drafted up and signing, which I thought odd. Ultimately, I agreed to a 30 year fixed mortgage at 3.125% for a duplex property $75K, which included the taxes and insurance in the payment. Not only did they increase my mortgage payment 4 months into payments, but it also included an increase to insurance stating an error in calculating the cost of replacement of my property. Is this shady on the part of my lender, the underwriter or is this something that is customary in the industry? If it is shady, how should I go about getting restitution or getting back to a manageable mortgage payment? Thank you for your answers

[Evan Polaski]

@Tracey J Shanklin, did your mortgage payment go up, or your escrow payments?  Your mortgage payment is principle and interest, and should be fairly easy to calculate.  

The escrows are your insurance and taxes.  The escrows will change, potentially every year, as your insurance rates fluctuate at renewal and your assessed value and/or tax rate changes.

As mentioned, you need to review your docs and talk to your loan officer about what actually changed.  To you it is your "mortgage payment" but I am guessing your mortgage payment didn't actually change, your escrows did.