Mortgage payment going up

iVillage Member
Registered: 05-28-2003
Mortgage payment going up
2
Thu, 11-13-2008 - 11:06am

I knew this was coming. We closed on our house in June and I remember from our first house that every year the payments would be adjusted for escrow. But when I opened the statement last night, I learned that our payments will go up by $300. WHAT? I called the mortgage company and was very calm with the woman who answered the phone. She asked what our taxes were last year and I explained we bought the house 5 months ago, her company did the estimates, how could they guess so low. She did some checking and it looks like they doubled the numbers. She opened a case for us and we'll find out next week what the true increase will be. I'm wondering if it will be a $150 increase. That's still high, but it's better than $300. This will hurt our credit repayment plan. We paid off our Slumberland card this month -- two months before interest rates kicked in -- and I planned on applying that payment ($300) to the next card on our list. I guess half of it will be going to the mortgage instead. I know we'll be OK -- at least all we have to do is shuffle funds rather than take money out of savings -- but still. We were on track to be debt free in 18 months (sooner, if summer child care wasn't so expensive). Sigh.


Meredith

iVillage Member
Registered: 11-17-2007
Thu, 11-13-2008 - 3:33pm

In the pass it has come to my attention that these people that handle escrow accounts like to have at least three month ahead on taxes and insurance.


Recently I got a letter from our bank that said there was a new law that stated that no company can keep more then 305.00 in escrow over the insurance and the taxes. In our case they refunded us around 32.00 for the year. About 2.50 a month on our mortgage payment

Community Leader
Registered: 07-26-1999
Thu, 11-13-2008 - 3:35pm
Unless the value of your house went up significantly or the tax rate in your city/county went up, or possibly if you bought the house from a senior citizen that had their tax rate frozen, that seems like an awful large error in estimation on the company's part.
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