Extra Mortgage Escrow

Expert, localized Los Angeles answers provided by Heather Roy

Extra Mortgage Escrow
	Ms. Lank: I am on a fixed income now and want to know how to keep my house payments from increasing year to year. I have a 30-year fixed mortgage. My house was re-evaluated amounting to a few hundred dollars property tax increase. My payment covers taxes and insurance, so my escrow account will show a shortage next year. In the past years when my escrow showed a shortage I paid it in a lump sum, but my house payment increased a little per month anyway, not as large as it would have if I hadn’t paid the lump sum shortage. If I sent them that few hundred dollars now marked “to be applied to escrow” would that keep my monthly payment from being raised, paying it before the shortage occurs?

	The mortgage company will re-calculate your payment based on anticipated costs of taxes and insurance for the coming year. As they can’t be sure you’ll always send in extra money, my guess is that your payment will go up somewhat in any event. Sorry about that.
	Edith Originally published on October 16, 2005

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