Mortgage increase

[jessib1015]

What is the name of your state (only U.S. law)? Texas

Our property taxes increased this year and we were given the option to pay the full amount or pay like we always do with our escrow. However, if we paid the full amount, our mortgage rate would still increase by about $300. How is that possible?

 

[LdiJ]

What is the name of your state (only U.S. law)? Texas

Our property taxes increased this year and we were given the option to pay the full amount or pay like we always do with our escrow. However, if we paid the full amount, our mortgage rate would still increase by about $300. How is that possible?

The amount you are paying covers this year. The escrow increase covers things on an ongoing basis. However 300.00 a month would indicate an annual increase of about 3600.00. Is that accurate?

 

[Gail in Georgia]

Check for increases in your homeowners insurance.

 

[HUD-1]

Don't forget the "doubling" effect. If taxes rose by $100 in January, they under-withheld $100 per month in the escrow account. For next year, they have to make up the $100 per month from last year, plus add $100 for next year, resulting in a $200 per month increase. Things to look into: Do you have an Adjustable Rate Mortgage?/hazard insurance increase/flood insurance increase/escrow shortage due to under-witholding...