I just got a letter from my motgage company. They were $123 short in escrow. So they are raising my monthly payment from $1000 to $1024 (over 12 months). Unless I want to pay off that $123 now in full. Then my payment will go to $1013. Why not back down to $1000? It's not MY fault they didn't have enough set aside for house insurance and taxes. Or is it? Anyone else ever run into this? I have not yet called to get details (if there are any), will do that first thing in the morning. Arrrgh.
Mortgage question- what's the deal??
- Thread starter AMP
- Start date
crabcake
But wait, there's more...
It's likely an increase in your taxes and/or insurance, so they are adding the increase to your payments from here on out. Sometimes they don't find out about it until after you've made a payment, so there is some "back" you'll have to pay, and they raise your payment from there on out. I had this happen when my homeowners took a jump after the tornado.AMP said:
Pete
Repete
How so? They simple collect 1/12th of the taxes and insurance per month for you and pay it when due. They even pay interest paultry as it may be on it while it accumulates. It just secures their interest in the property so it doesn't get snatched by the county for back taxes or lose out if the thing burns down uninsured. :shrug:Bogart said:
K
Kizzy
Guest
It depends how you look at it. For the financially disciplined, a person would allocate enough funds and put it in the savings, therefore earning interest on the money every month, since a good majority of escrow accounts are NOT interest bearing. Now for those who are not disciplined, a monthly payment is the only way the money is sure to be where it is needed. In all likelihood AMP, your next year’s projected taxes and homeowner’s insurance has increased. We were 1 cent short and our payment went up I think 12 bucks a month too. They are not out to steel your money, if there is more in it next year than was needed, your payment will be adjusted again.
That makes sense to me. I just never had this happen in 10+ years of owning a home and 4 refinances. Financially disciplined? I am financially shellshocked this year. 
Anyway, I pay into escrow, my parents always paid into escrow, it all seemed to work out fine, never got caught out with taxes or insurance.
Thank you, I am less disturbed by this now.
Anyway, I pay into escrow, my parents always paid into escrow, it all seemed to work out fine, never got caught out with taxes or insurance.Thank you, I am less disturbed by this now.
K
Kizzy
Guest
Well right now, many are living on tight budgets, so when you get a notice saying your mortgage payment is going up (meaning taxes are going up and homeowner's insurance is going up), coupled with the fact that our electric bill is going up early next year, our water bill is going up and you will now be charged a yearly fee for having a septic system, every time you turn around, there is a new charge, less service and incomes are not moving as quickly as the rising cost. Today, the DOW slipped 46 points, and it could be worse before the end of the week with the value of the U.S. dollar slipping. Economist are worried about inflation hitting and hitting hard, and quite frankly, I am concerned myself.