escrow account increase

[TXDean23]

My wife and I have been in our home for about a year and a half. We have an escrow account set up, but just got a letter in the mail from the bank that holds our mortgage saying that our escrow account is about 1700 short and that our payment will increase starting in May by 200 dollars to make up for it.

Is this a normal thing? I guess I just naively assumed that the escrow account would be managed properly to where we didn't have to worry about having an increase in payment.

[ladrones]

Did your property tax go up?

[3DW5]

I am down the road from you and mine went up 200 bucks as well... Wife said school and property taxes went up... Sucks

[tex8569]

Its based on property tax and insurance. You should be able to calculate it yourself and know if your long or short. So if one went up, thats an easy explanation. Most companies only do annual adjustments. At the end of the day youre going to pay the same amount just like taxes, its just do you have to write a check or get a check.

[BrandonH]

Yes this is normal. Either your taxes or insurance went up, so your escrow payments will follow.

[ShockValue]

It's normal. They are making up the short fall and planning for next years increase.

[TXDean23]

Honestly, I'm not sure. We are new to the whole house owning thing still and are just finding out a lot of things. I think there's something we need to file called a homestead still. Will that change anything?

Just saw all the other replies. I guess we will just have to live with it then. Thanks for all the info.

[Codie]

that bank is doing nothing more than making sure you have enough of YOUR $ in your escrow acct to pay the upcoming renewal of your home insurance and property taxes. If your taxes/insurance go up then that creates a shortage, which has to be made up in order for you to have enough $ in your escrow acct for them to pay those bills when they come due again 1 yr later. If they go up again the next year you can expect for your escrow acct to require additional $ monthly in the future. Since insurance and taxes both tend to go up often I would just plan on your escrows going up pretty regularly.

[Dspivey]

This has happened to me the past 2 years. With my letter I get from my bank they usually tell me, I can make a lump payment and my mortgage wont go up or you new payment with be X dollars now. But mine has never has that huge of a shortage like you are talking, its usually been around $275-$300. And I usually just make the lump payment, to keep my payment on the lower end.
Just my experiences.

[Codie]

Honestly, I'm not sure. We are new to the whole house owning thing still and are just finding out a lot of things. I think there's something we need to file called a homestead still. Will that change anything?

Just saw all the other replies. I guess we will just have to live with it then. Thanks for all the info.

yes contact your appraisal district and tell them you want to file a homestead exemption. Not sure how much it will help, but it will help some

[axisbuck]

1.may be Property taxes went up ..you can protest it...
2. If home insurance went up time to shop around and find same coverage but with lower premium. Then you fax the new insurance copies and premium to mortage company.
I went the second route and was able to cut the escrow shortage in half

[kingranch]

Homestead gets u exempt when u file return for the taxes u pay....u still have to pay em tho it comes off your total taxable income

Shop your ins and it will save u $ go with a higher deductible if you are a handyman u can fix minor problems and just have ins for catastrophic damages

[oktx]

Happens all the time. When we bought our first house we got a big fat check back for an escrow overage. We went and blew every dime of it and the next month they said we had a shortage and asked for that money back. We learned our lesson.

[Samson]

Honestly, I'm not sure. We are new to the whole house owning thing still and are just finding out a lot of things. I think there's something we need to file called a homestead still. Will that change anything?

Just saw all the other replies. I guess we will just have to live with it then. Thanks for all the info.

Yes you should file the exemption. It will knock some % off your appraisal value and will also help protect you against some creditors.

[TXDean23]

Is protesting really worth it? I am about to call my insurance company to see what is going on with their side as well.