Viewing a single comment thread. View all comments

Longjumping-Nature70 t1_iydve5m wrote

I do not understand this.

Did you buy a property that increased in value 200% or something in two years? If so, bully for you, well done.

How can a mortgage lender NOT charge you the correct property tax/escrow? It is not like it is a secret to them.

This is why you pay your 20% in equity so you do not have to deal with escrow/PMI.

0

sephiroth3650 t1_iydyuct wrote

Property taxes and homeowner's insurance rates change yearly. It's impossible for the lender to proactively predict how much it will change. When the bill comes due, they pay it. If rates went up and the escrow account is short, they cover the shortfall, and adjust the escrow payment to make up for it. If people don't like it, then don't pay those bills via escrow on your mortgage. Pay those bills separately on your own. Then the mortgage payment won't change.

This has nothing to do with putting 20% down and avoiding PMI. PMI is completely separate from property tax/insurance escrow.

2

NachoDog1000 OP t1_iyei15n wrote

Bought at 500 in 2020 and Zillow currently estimates it's 610. Looking through some old mail it looks like for taxes they used something like 400 as the figure last year, since this house has been in the 400s until 2020. I'm guessing taxes have been reassessed.

1