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Payment Going Up |
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I bought my first home in the fall of 2006. I got a 30 year fixed rate mortgage. Since then, my mortgage company has raised the money required for my escrow account by $200 a month. Is this normal? I figured my mortgage might go up a little bit in the lifetime of the loan because of taxes, but $200 a month is bordering on the unaffordable to me. If this continues, I will be priced right out of my home! What can I do? |
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That escrow money really belongs to you and it will be used to pay your taxes and insurance bills. If they're collecting too much, they'll make a year-end adjustment and your payment should drop, sooner or later. In the meantime you can think of it as enforced savings (often they have to pay you a small amount of interest on it.) If they're not collecting too much, then it means your bills have gone up, that's money you really owe, and there's not much you can do about it. |
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Edith
Originally published on April 29, 2008 |
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