Mortgage Rant

[whodunit]

Several months back I get an unexpected check from my mortgage company for about $150 or so. I call to make sure I understand things correctly and what they tell me is that they are required by law to basically overestimate the amount they set aside for the escrow account (to pay insurance and property taxes) and then refund back anything that is not used.

Fast forward several months and today I get a letter indicating they are short now short $80 or so, and ask how would like to pay it- all up front with a $6 or so increase in the monthly mortgage payment or in monthly installments with the increase plus the shortfall.

One, this is stupid and two, it means that my insurance and taxes have increased. It's not a huge amount but it just underscored to me how everything but wages increase.

Last month I just realized that my take home is about $20 less a month due to health insurance increases. So, now I pay about $440 a month for those.

We didn't get a raise this year, but got 30 hours paid time off instead. For me that works out to a value of about $36 a month, so essentially between the increases in my health insurance, property taxes and homeowner's insurance I am about $10 a month ahead. That was easily obliterated by inflation (gas costs for instance).

Add all that to losing my second job and $540 or so in wages each month and the agency I work for cutting back on OT, and I am not very happy right now.

I guess I should look at the bright side and be happy I have a job, but even that seems tentative at times.

[Danaus29]

That's why we refinanced with a second mortgage and pay our own taxes and insurance. The up and down, miscalculations, late or no payments, etc really got on my nerves. Really, the bank had our money. Why couldn't they pay the insurance on time? I got 2 late notices and an intent to drop from my ins company one year. Borrowed the money to pay the insurance that year.

I feel for you. Everything goes up but the income.

[emdeengee]

Almost the same thing happened to us years ago and after that we refused to allow the bank that held our mortgage to pay our property tax. We save for it and do it ourselves. I got very tired of them playing ping pong with our money. Refund it because they collected too much money for the taxes in 1995 and then increased our monthly amount for the taxes in 1996.

We just automatically start saving an additional 10% of our net income every January because we know by the end of the year the increases and inflation will have taken it. This of course means we have to earn at least 10% more each year.

[whodunit]

I had always been "taught" it's better to have it all incorporated into one payment, but it's probably like claiming less dependents so you get a "refund" at the end of the year. So, essentially someone else has your money all year long.

Like most people, though, I am probably lazy when it comes to finances. I know that I will have to renew my auto insurance every year, but I don't save for it. Same with tires, etc. I'd be afraid I would lapse into that mentality with my homeowner's and property taxes.

[time]

I don't mind the yo-yo. My taxes do fluctuate. Sometimes less, sometimes more.

I always have them apply any escrow extra to my principle balance. Every little bit helps.

My mortgage complaint is that I've been working on refinancing for 4-5 months now. No problems. Just that slow. Seems banks aren't in a hurry to lend cheap money.

[Harry Chickpea]

heh. Try being in business for yourself. No employer to blame. (I suppose I could, but I'd rather not have to report myself to myself for insubordination.)

[Sawmill Jim]

Originally Posted by Harry Chickpea

heh. Try being in business for yourself. No employer to blame. (I suppose I could, but I'd rather not have to report myself to myself for insubordination.)

Hey why not ,i fired myself twice in the same day

[mnn2501]

My mortgage company does that every year, after the first time of having exactly what you said happen I now cash it and then pay it back as an extra escrow payment as taxes and insurance usually go up.