mortgage/escrow

[kingjason]

You definitely shouldn't have had to have PMI. How long ago did you buy?

I've had fluctuation in my escrow, mostly due to changes in property taxes. Most people will experience a yearly increase in property taxes. It is a damn racket, they don't actually send someone out to take a look at properties, they just increase a certain percentage every year it seems like.

Once you get your tax statement, go to work and put together a list of things that need fixed on your home, the more the better. Last year, I submitted a bid for $7k worth of fence and $1k worth of grading, my purchase price that was $11k less than what my property showed on the tax roll. I pushed for the $92K I bought my house for vs the $113K they had it appraised at, they met me in the middle at $96K or $97K. Thanks to that, my previous years increase in escrow was erased and my overall payment dropped $50 vs when we first bought the house 2 years ago.

I will be doing the same thing this year and adding in an estimate to replace the entire HVAC system.

Oh they send them out. Every year we get a ton of calls for about a month or so and it is the Tax office people walking around with cameras. They are taking pictures of your property to use against you in these things and to raise your taxes. What sucks is apparently Ellis County is on fire for home sales and mine has went up 40k or so. Plus a vote went out for the fire guys and they got a little raise and nowwww they want to build a fucking mega park complex and rasie taxes again. I am ready for the next bubble bust!

[slow99]

I put enough down that escrow was not a requirement, but it was cheaper to get one that required escrow. I've had no issues with it, aside from changing insurance and having to pay/get refunded, etc. I dont have any complaints.

Huh?

No escrow, no problem. I stash money all year long and then pay the taxes in one lump sum from the account where I hide the money. It comes out of my paycheck automatically. That crazy changing escrow mess happened on my first house way back in 1998, and I swore never again. I haven't paid PMI or any escrow since.

I won't do it again. I had a buddy I trust telling me adamantly not to do it ... should've listened.

I didnt have an option. It's part of my loan requirements.

[Baron Von Crowder]

Huh?

did I stutter? My loan required escrow, it was cheaper. You're pretty good at math, I figured you could add that up.

[slow99]

did I stutter? My loan required escrow, it was cheaper. You're pretty good at math, I figured you could add that up.

Okay

[Chili]

did I stutter? My loan required escrow, it was cheaper. You're pretty good at math, I figured you could add that up.

Okay

I think he's saying he got a better interest rate on the mortgage that required him to have an escrow account. He could have gotten a product thatdoes not require escrow, but the rate would have been higher. I'm guessing that means he went FHA even though he could have gone conventional, because the FHA rate was better that the conventional he was being offered.

Elvis - As others have said, as your taxes and homeowners insurance goes up, your escrow account will need to as well. But they will not know about the increase until they pay it on your behalf, and then they have to play catch-up with you the following year.

You should be able to pay extra towards escrow regardless, and self-correct. That said, it's not like you're being penalized, so what does it matter? The same amount of money goes out regardless. Your best protection is to make sure you shop your homeowners each year rather than auto renewing, and possibly disputing your tax assessment.

[Mach1Run]

I got the same letter only it was $3000 short. The Lending Partners. They have fucked so much up after closing i pray everyday they sell our loan. What i did on the last house was pay an extra $50 - 100 a month straight to escrow so it wouldnt be short next year and any overage was refunded after the taxes were paid.

[Chili]

I got the same letter only it was $3000 short. The Lending Partners. They have fucked so much up after closing i pray everyday they sell our loan. What i did on the last house was pay an extra $50 - 100 a month straight to escrow so it wouldnt be short next year and any overage was refunded after the taxes were paid.

Was it new construction and the first year? That is usually where people get hammered the most. The first year taxes are estimated based on the unimproved value, so escrow for taxes is cheap, Then after the first year the county ups the assessment to account for the structure. Your taxes shoot up but the escrow account was only getting teh estimate based on teh prior year's unimproved tax value.

And yes, Texas property taxes are very high, proportionally, compared to other states.. Keep in mind though, that the money is made up for elsewhere in those lower cost states (state income tax / higher sales tax / etc).

[AdamLX]

An escrow waiver fee is usually an additional 0.25-0.50% of cost added to your total.

[Chili]

An escrow waiver fee is usually an additional 0.25-0.50% of cost added to your total.

Makes sense..

[Big A]

You definitely shouldn't have had to have PMI. How long ago did you buy?

FHA loans require PMI for the term of the loan. I would seriously consider a refi, I can't imagine that the rate was so much lower than conventional as to make up the difference.

Makes sense..

Does it really? You are paying for the "privilege" of paying taxes and insurance when they are due. Real estate is such a scam, with no other item in one's life will you pay double to finance it, and it's the most expensive to boot.

[Chili]

FHA loans require PMI for the term of the loan. I would seriously consider a refi, I can't imagine that the rate was so much lower than conventional as to make up the difference.




Does it really? You are paying for the "privilege" of paying taxes and insurance when they are due. Real estate is such a scam, with no other item in one's life will you pay double to finance it, and it's the most expensive to boot.

I don't mean it makes sense for the mortgage company to charge it, I mean it makes sense as an explanation as to why DJ's mortgage is cheaper..

Banks are always looking for a way to make more money off of you, this should be no new surprise. When I was in the business a couple of decades ago, we did not charge a premium for that, but things change. For an extra 0.25% - 0.50% I would be letting them do it. lol

I'm sure they would say that you aren't charged more for handling your own taxes and insurance, they would say you get a discount for allowing them to manage via escrow account.

[Chili]

BTW, interesting fact, in CA we never called it an escrow account, we called it an impound account. The term 'escrow' was only used in reference to the money swap at closing (handled by the 'Escrow' company)..

[black2002ls]

Oh they send them out. Every year we get a ton of calls for about a month or so and it is the Tax office people walking around with cameras. They are taking pictures of your property to use against you in these things and to raise your taxes. What sucks is apparently Ellis County is on fire for home sales and mine has went up 40k or so. Plus a vote went out for the fire guys and they got a little raise and nowwww they want to build a fucking mega park complex and rasie taxes again. I am ready for the next bubble bust!

I was going on assumption! I'm out in Hunt County, when I was disputing mine, they never gave any indication as to whether they had been to the property.

I got the same letter only it was $3000 short. The Lending Partners. They have fucked so much up after closing i pray everyday they sell our loan. What i did on the last house was pay an extra $50 - 100 a month straight to escrow so it wouldnt be short next year and any overage was refunded after the taxes were paid.

This happened to my boss on his new home. They screwed up his Escrow, to the tune of an additional $1500 or so a month to get caught up and to cover next year.

FHA loans require PMI for the term of the loan. I would seriously consider a refi, I can't imagine that the rate was so much lower than conventional as to make up the difference.




Does it really? You are paying for the "privilege" of paying taxes and insurance when they are due. Real estate is such a scam, with no other item in one's life will you pay double to finance it, and it's the most expensive to boot.

If he put 35% down there was no reason he should have gone FHA. FHA is generally for people who can't put down the minimum for a conventional loan. I'm a broke dick, so, I have an FHA loan because I could only manage 3.5% when we bought.

[Broncojohnny]

Wells Fargo loves to send out those letters saying your payment is going up. If you call to complain they will propose a refi of your loan.

[MadMax404M]

I moved into my house 2014. Chase buys out my mortgage shortly after move in. 2015, get the letter goes up $100/month. 2016, get the letter, goes up $200/month. Insurance didn't go up, assuming property taxes went up due to our house value sky rocketing due to new housing built across the street(house value shot up almost $25,000 6 months after purchase). I tried refi earlier this month, doesn't do me any good payment goes up $5 after closing costs ext...I am under a USDA loan not FHA.

Going to put a call into Chase next week to figure out what the hell I need to do to stop getting these letters. I understand expenses increase but every single year and now $2400/year since moving in is a bit ridiculous.