chikagemi t1_iybjgw7 wrote on November 30, 2022 at 4:09 AM

Are you absolutely sure it’s $600 a month and not $600 upfront if you want to pay the whole shortage for the year? Our mortgage company used to give us that option if the escrow account would be short.

NachoDog1000 OP t1_iybjz9n wrote on November 30, 2022 at 4:14 AM

Yes because it says we can pay about $4,000 upfront and then our payment is only $250 higher a month, which still seems like a big increase.

Grevious47 t1_iybox9y wrote on November 30, 2022 at 4:59 AM

$4000 is the underpay and $250 a month is the increase. The $600 a month is to pay $350 towards that $4k every month while covering the $250 increase. Having a $4k underpay off a $250 increase would suggest that the increase happened 16 months ago and the escrow company only now caught it.

A $250 a month increase from prop tax and insurance is not at all outside of normal but yet does seem to suprise first time himebuyers. Yes, the cost of your house will go up over time.

terpischore761 t1_iybtpqw wrote on November 30, 2022 at 5:48 AM

350 x 12 is $4200. So you can pay a lump sum or add it to your monthly payment.