Escrow Payment Update: Prepare for Changes in Your Home Expenses
Preparing for an increase in property taxes and homeowner’s insurance.
Today, we’re sharing some very important news: Your home payments will be increasing. To explain this a little further, know that your mortgage, property taxes, and homeowner’s insurance make up your escrow payment. This is held in an escrow account, which mortgage companies reevaluate annually based on new premiums. If rates have gone up, you will have an escrow shortage.
When this happens, you can either increase your monthly payments or pay the balance in full. You’ll need to be ready to decide how to handle this by the end of 2023 or the beginning of 2024, as this change is coming up.
"Your home payments will be increasing."
Know that your principal and interest aren’t increasing, as many people have a fixed-rate mortgage. However, your property taxes and homeowner’s insurance payments will be changing for about 99% of people.
To notify you of this, you will be receiving a note in the mail with your property tax notice. This will show you the difference that you owe. Therefore, start preparing and budgeting for this change. Unfortunately, these payments aren’t optional, so you need to be ready.
You have a lot of options, so don’t be afraid to ask for help. You can call or email us anytime, and we would be happy to answer any questions that you have. We look forward to talking with you soon!
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