re: Anyone got the dreaded yearly escrow letter yet?

quote:

---

Decline escrow and pay insurance once a year and you’ll have a consistent mortgage payment.

---

I love the OT. I never knew this was an option.

So, your payment has gone up by 18%. Lets say taxes only take up a small portion, we will say insurance has gone up 15%...

How much has your property value gone up? Nat'l average is about 4% a year. If you got a "good rate" then you bought, or financed, likely in 2020 or 2021. I'd be willing to bet your home value has gone up by about......... 20% since then.

I am in no way discounting the insane cost of insurance. But, we cannot have our cake and eat it too. If the value of the home goes up, so will the cost to insure said home... Plain and simple.

This is the ot, where everyone is a baller but whines about high insurance and crawfish prices.

quote:

---

Try comparing to buying in the early/mid 1980's. That was insanity that most people have forgotten. Especially the entitled youngsters.

---

I bought my first home in 1986. I went 30 year fixed. The rate was 11.5%.

I knew some people who went with the adjustable rate who ended up getting crushed by the increases.

I knew what my monthly payment was going to be and I budgeted for it. No issues.

quote:

---

We have roughly 50% equity

---

If you have an FHA loan or have less than 20% LTV, you have to use an escrow account for taxes in insurance, otherwise you don't.

You should be able to easily remove the escrow (without refi) in about 30 days once you ask. Removing escrow gives you back agency, which you seem to lack, "Oh noes, look my payment is going up!" You would have known that if you looked at your tax statements year over year (in my county in TX, you know months in advance) and whenever your insurance came up for renewal (the term of which probably started whatever month you started your mortgage, not on 1 JAN).

There are multitudes of horror stories about escrow companies fricking up estimates, and giving you 30 days notice they want another $4k before 31 December, etc. You're relying on faceless drones to get estimates right, when you can take control of yourself and stop being blind.

quote:

---

Most lenders require those be paid through escrow to my knowledge.

---

If you put 20% down you can request to not have property tax and insurance in escrow. Depending on lender they might reject or ask you to put down 21-25% and they will allow. Escrows are a complete and total scam. I don't need someone to 'hold' my money for me. I'm completely capable of paying my ins and property taxes myself.