Current Events > Mortgage went up 80 bucks a month this year to cover escrow shortage = (

(+) Yeah! (+)

This is some bullshit tbh. Better not be fucking permanent either. Trying to see if my loan people can take the 500 now to cover the shortage instead of making me pay some 850 extra over the year to cover. Don't think my taxes went up either so that's not it. According to the report they sent me, sometime next August, for one month only, is when my escrow account won't have 2 months worth of payments in it to cover the cost which is a violation of federal law apparently.

This is some bullshit.

I dealt with similar issue earlier this year. Sucks.

After this year it would go back down though right?

Had the same issue. Mine went up about 30 bucks. Even though they sent a letter saying it would be temporary it wasn't. I'm figuring it's a tax increase.

WrkHrdPlayHrdr posted...

Had the same issue. Mine went up about 30 bucks. Even though they sent a letter saying it would be temporary it wasn't. I'm figuring it's a tax increase.

By temporary you mean one year right? 80 bucks a month wont break the bank but damn thats like a week worth of food or eating out once a week for the month.

Makeveli_lives posted...

By temporary you mean one year right? 80 bucks a month wont break the bank but damn thats like a week worth of food or eating out once a week for the month.

The way it was worded made it seem it would be for a couple months, but it's been a year. Maybe call the mortgage company and ask?

Probably a safe bet to assume that taxes and insurance will only keep going up. Rarely would you see them come down. Therefore, I wouldnt plan on your payment going back down.

CE_gonna_CE posted...

Probably a safe bet to assume that taxes and insurance will only keep going up. Rarely would you see them come down. Therefore, I wouldnt plan on your payment going back down.

Only reason I got the damn mortgage was for consistent payments. And I'm not worried about taxes in particular, I live in a very small town. As in under 1 square mile, about 2200 people population. We don't have our own public library or police. We're between like 5 decent sized towns/cities in NJ so we share all of that without paying for any of them so I don't know how taxes could jump that high in the future.

Your mortgage itself (principal/interest) will be consistent. It's the taxes and insurance that will fluctuate, almost always upward.

Bought our house in 2019, full payment was $1804. In 2020 it went up to $1825. In 2021 it went up to $1886. This year it went up to $1914. Figured we'll be paying $2000/month by 2024. Not counting the HELOC we pay like $120 a month on lol

If the value of your home increases, your taxes increase.

Mine went down after last year because of an overage. I'm still putting a little bit extra into Escrow to make sure I don't have a shortage, or at least make the shortage a little smaller if there will be one.

Makeveli_lives posted...

Only reason I got the damn mortgage was for consistent payments. And I'm not worried about taxes in particular, I live in a very small town. As in under 1 square mile, about 2200 people population. We don't have our own public library or police. We're between like 5 decent sized towns/cities in NJ so we share all of that without paying for any of them so I don't know how taxes could jump that high in the future.

Oh, youre in NJ? That explains a bit They consistently beat out my state of IL as the highest rates in the US.

Have you looked at the tax bills just to see if you can see the jump on them? Low taxes in NJ might equate to relatively high when compared to the rest of the country.

Alternatively, not sure how much if your house is paid off at this point and what the value is, but if enough is paid off you could request to do the escrow yourself. Youd be responsible for paying taxes and insurance yourself, but youd get a check back for whatever the mortgage company is keeping in escrow.

Im actually going to do that here in a month, only because my lender has a rule that they cant do it until the loan is 2 years old.

CE_gonna_CE posted...

Oh, youre in NJ? That explains a bit They consistently beat out my state of IL as the highest rates in the US.

Have you looked at the tax bills just to see if you can see the jump on them? Low taxes in NJ might equate to relatively high when compared to the rest of the country.

Alternatively, not sure how much if your house is paid off at this point and what the value is, but if enough is paid off you could request to do the escrow yourself. Youd be responsible for paying taxes and insurance yourself, but youd get a check back for whatever the mortgage company is keeping in escrow.

Im actually going to do that here in a month, only because my lender has a rule that they cant do it until the loan is 2 years old.

5% down payment and only been here a year. Not ready to take the escrow myself.

This seems to happen most years for me

Makeveli_lives posted...

Not ready to take the escrow myself.

You are still paying the same amount. Unless you dont think you can set apart enough money without wanting to spend it, it is pretty easy to do yourself. Not sure on where you live but here you literally just log into a website to pay the taxes. You can do it twice a year or if you want to forget about it just pay them in full at the beginning of the year.

For insurance, that's also an easy one time yearly payment via your providers website. You will get reminders for renewals as well.

RlP posted...

You are still paying the same amount. Unless you dont think you can set apart enough money without wanting to spend it, it is pretty easy to do yourself. Not sure on where you live but here you literally just log into a website to pay the taxes. You can do it twice a year or if you want to forget about it just pay them in full at the beginning of the year.

For insurance, that's also an easy one time yearly payment via your providers website. You will get reminders for renewals as well.

All this is of course true.

Based on 5% down payment and buying the house last year though, my guess is that hes stuck with the escrow for a while. I know rules vary from state to state, but in general LTV tends to have to be 78-80% for them to even consider removal. Unless his home has gone up 15%+ in value, hell have the escrow (and PMI, Im guessing) for several more years anyway.

CE_gonna_CE posted...

All this is of course true.

Based on 5% down payment and buying the house last year though, my guess is that hes stuck with the escrow for a while. I know rules vary from state to state, but in general LTV tends to have to be 78-80% for them to even consider removal. Unless his home has gone up 15%+ in value, hell have the escrow (and PMI, Im guessing) for several more years anyway.

Bought for 318 value us apparently around 350 right now

This happened to me last year, and this year.

It sucks.

Makeveli_lives posted...

Bought for 318 value us apparently around 350 right now

Yup, ~10% gain sounds about right. Been seeing that pretty consistently in various cities across the country.