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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Mortgage/finance people?
I'm befuddled about my mortgage payments. We moved into our house June, 2006. Our payments up until this month were $2663.55.
This month our statement says we owe $3,059.93. I called the company and they explained that this is because they did an analysis of our account in October and disdcovered that we will have a deficit in escrow in June 2008 when we have to pay our school/county taxes.
The woman told me it's because the amounts we actually paid for the county/school taxes were higher than estimated, by the following:
County
-Paid $2220
-Actual $2704
School
-Paid $7602
-Actual $8247
Homeowners
-Paid $1230
-Actual $1271
Ok, I understand that our payments should increase because our taxes and insurance increased. BUT, the difference is about $1200. Why in the world then does it necessitate an almost $400 increase per month?
I'm going to call back, but I was hoping someone on here may have some answers so when I call back, I'm a little more "informed" 
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Posted 11/26/07 11:52 AM  |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Mortgage/finance people?
This is one reason I took out the homeowners and taxes out of my mortgage because they wanted to hold money in escrow. I now pay them myself and make the interest off of the money I save rather than the mortgage company doing it.
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| Posted 11/26/07 11:56 AM |
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Shroggie
Don't Worry...Be Happy
Member since 5/06 6261 total posts
Name:
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Re: Mortgage/finance people?
I think maybe they did that so that your escrow isn't in the red in the future.
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| Posted 11/26/07 12:04 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Mortgage/finance people?
Posted by Shroggie
I think maybe they did that so that your escrow isn't in the red in the future.
Probably - but if you take what we underpaid for this year ($1200) and add that to our estimate for 2008, it's about $2500, so I still don't see why they need to take an additional $400 per month for escrow, which equates to $4800. It's almost double what we REALLY need for escrow to cover the deficit and any increase for 2008!
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| Posted 11/26/07 12:10 PM |
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MrsT
Enjoying wedded bliss.....
Member since 4/06 1323 total posts
Name:
Katrina
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Re: Mortgage/finance people?
Posted by Shroggie
I think maybe they did that so that your escrow isn't in the red in the future.
This is true but $400 a month is obscene when you are only $1200 short for the year. We were $213 short for the year and received a bill. Our escrow went up by about $25 a month.
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| Posted 11/26/07 12:35 PM |
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dawnie
Barb-Never removing this pic!
Member since 11/05 3932 total posts
Name:
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Re: Mortgage/finance people?
They did the same thing to us!
Our mortgage payment was around 2400 and it went up to 2800!
I almost had a heart attack!
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| Posted 11/26/07 12:39 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Re: Mortgage/finance people?
I believe that when you have a deficit in an escrow account, they inflate the number a ridiculous amount to ensure that there isn't a deficit again regardless of any increases.
If you have the discipline, I would pay my own taxes and insurance instead of escrow, especially with what is going on with the mortgage industry.
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| Posted 11/26/07 1:21 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Mortgage/finance people?
Posted by shamrock124
I believe that when you have a deficit in an escrow account, they inflate the number a ridiculous amount to ensure that there isn't a deficit again regardless of any increases.
If you have the discipline, I would pay my own taxes and insurance instead of escrow, especially with what is going on with the mortgage industry.
ITA with you. This is our 2nd year doing this and I LOVE it. I make interest on my money and don't have to worry about a huge increase in my mortgage bill every year.
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| Posted 11/26/07 1:43 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Mortgage/finance people?
Posted by hazeleyes33
Posted by shamrock124
I believe that when you have a deficit in an escrow account, they inflate the number a ridiculous amount to ensure that there isn't a deficit again regardless of any increases.
If you have the discipline, I would pay my own taxes and insurance instead of escrow, especially with what is going on with the mortgage industry.
ITA with you. This is our 2nd year doing this and I LOVE it. I make interest on my money and don't have to worry about a huge increase in my mortgage bill every year.
After this debaucle, it's definitely something I'm going to think about and discuss with DH.
In the meantime, can I fight with the mortgage company to lower the estimate? It's ridiculous, especially considering we grieved our taxes so they will be going DOWN in 2008!
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| Posted 11/26/07 1:57 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Mortgage/finance people?
Posted by Bxgell2
Posted by hazeleyes33
Posted by shamrock124
I believe that when you have a deficit in an escrow account, they inflate the number a ridiculous amount to ensure that there isn't a deficit again regardless of any increases.
If you have the discipline, I would pay my own taxes and insurance instead of escrow, especially with what is going on with the mortgage industry.
ITA with you. This is our 2nd year doing this and I LOVE it. I make interest on my money and don't have to worry about a huge increase in my mortgage bill every year.
After this debaucle, it's definitely something I'm going to think about and discuss with DH.
In the meantime, can I fight with the mortgage company to lower the estimate? It's ridiculous, especially considering we grieved our taxes so they will be going DOWN in 2008!
Not sure of that. I know that when they increased my bill I was able to either do it in payments or all at once. I would try and take it all out ASAP if you can so nothing will go up.
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| Posted 11/26/07 1:59 PM |
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