Can a new mortgage company raise the original fixed rate mortgage amount, not including the escrow?

UPDATED: Apr 30, 2019

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 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.

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 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.

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