Ok, here's my dumb question: my mortgage payment went down...

I just went to go pay my mortgage online and I noticed that it's 300 dollars less a month that it usually is. So, I checked and they adjusted our escrow payments. This is the first full year that we've owned the house, so I'm not sure if this is typical. My husband seems to think the payment will go right back to where it was next month
We got a check last year as a refund from our escrow bc we overpaid, but our payments went up a bit for this past year, so I'm wondering what the deal is?

Re: Ok, here's my dumb question: my mortgage payment went down...

Heres a dumb question, did you just get STAR?

Re: Ok, here's my dumb question: my mortgage payment went down...

Not that I know of, I don't think we even applied for it

ETA: I can see on my account summary online that they adjusted our escrow payments, so I know where the money was taken off of, but I am just wondering if this is actually going to last? I mean, I don't want to come up short next year, you know?

Message edited 12/7/2009 9:12:44 PM.

Re: Ok, here's my dumb question: my mortgage payment went down...

if they adjusted your escrow, either your insurance or taxes went down.

Since you just closed last year, you could have put too much into your escrow at closing, and they are lowering your payments instead of giving you a check out of it.

I would get copies of your tax bill & insurance statement. Add up the yearly bill and divide by 12. this should be what your escrow payment is a month, roughly.

HTH

Re: Ok, here's my dumb question: my mortgage payment went down...

lucky you....our escrow is always short and we have to pay after tax time

Re: Ok, here's my dumb question: my mortgage payment went down...

Posted by jes81276

lucky you....our escrow is always short and we have to pay after tax time

Re: Ok, here's my dumb question: my mortgage payment went down...

That would make me nervous but given that it's December and they probably have to close their books for the year, you likely overpaid for some reason and this is the full credit on your account. I'd chalk it up to a one-time 'gift' but if it happens again next month I'd call to check on it - you certainly don't want to get stuck with a huge bill next year!

Re: Ok, here's my dumb question: my mortgage payment went down...

The same thing just happened to me! We closed on our house in March, and then in October I got a fairly significant check for escrow overage, and notice that effective 12/1 my payments were going DOWN about $200 a month!

**Edited to add that we got the check attached to the notice that the payments were going down, with a breakdown of numbers, so it seems legit for now - just that it could change again - but I use Wells Fargo and they gave me ample notice before my monthly payment changed.**

I am bracing for it to swing back though next year - when homeowners insurance gets added to the monthly payment (we paid the first year up front) and to see what happens with taxes.

The previous owner was an old lady with a million extra discounts on her taxes so they had to adjust our numbers a few times already - I am guessing they ultimately overestimated what it would be when they put it back to "normal."

I certainly don't mind saving the $200 a month around the holidays though!

Message edited 12/8/2009 9:27:09 AM.

Re: Ok, here's my dumb question: my mortgage payment went down...

Yes its very likely your payment will be going back up next year, probably by 200-300 a month.

Re: Ok, here's my dumb question: my mortgage payment went down...

I would call and complain and demand to pay more

Sorry I don't know much about this... I am interested to see what ours will be next year!