 |
Insurance Going Up |
| |
 |
Dear Edith Lank, My wife and I bought a house here in April of 1995. It is a 30-yr fixed(on a VA loan). Every year in December, we get a notice from the bank(out-of-state), that we have to pay an extra amount, or the payments go way up starting in the coming January. So, we send a check ranging anywhere from $260.00-$600.00. When I called the bank, they said it was not them doing it, but was the insurance company raising the value of our house each year that was causing the money required at each year’s end.
My insurance agent never has called us back (we live rural, so cannot get another insurer). Is this just the agent's way of getting more of his cut each year? The insurance is included in the monthly mortgage payment. Do we have any recourse, or are we stuck with the increasing payments? |
| |
| |
 |
Answer : It's true that insurance rates are going up, and the bank has no choice but to take out enough money to pay those premiums on your behalf. Your insurance agent is the one to discuss this with. Ask if there are any ways to hold your premiums down. Sometimes, if you're willing to take on some of the risk yourselves, you can cut costs by raising your deductible, the amount of loss you'd cover yourselves.
In any event, this is not your lender's fault, and you do have to go along with their charges |
| |
|
Edith
Originally published on September 6, 2006 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
