Posted on: 11th Dec, 2008 11:54 am
I have been in my house almost 3 years my current mortgage company keeps raising my payment on a fixed loan saying my property taxes keep rising I would like to get away from a escrow account and mortgage company appraisal on my home was 94000 i owe 88867 could use little equity i have to pay off bills plus i dont have perfect credit whats my best option
Hi gkitzmiller,
Property taxes can increase annually and the lender will charge you accordingly with the increase in the property taxes. Even though you do away with the escrow account, you will still have to pay the property taxes. However, if there is an escrow account, you will at least know the amount that you will have to keep aside for the payments. This will help you in organizing your budget and expenses. So I don't think refinancing the mortgage will help you in any way.
Thanks
Property taxes can increase annually and the lender will charge you accordingly with the increase in the property taxes. Even though you do away with the escrow account, you will still have to pay the property taxes. However, if there is an escrow account, you will at least know the amount that you will have to keep aside for the payments. This will help you in organizing your budget and expenses. So I don't think refinancing the mortgage will help you in any way.
Thanks
you still have to pay your real estate taxes whether there's an escrow account or not. not only that, but your lender is predisposed to maintain an escrow account, because without one the lender is in more jeopardy.
there is jeopardy because your real estate taxes would be the first item paid in the event that your loan became a problem and foreclosure was required. the first mortgage would then be a second mortgage, and that's simply not acceptable in the mortgage business.
there is jeopardy because your real estate taxes would be the first item paid in the event that your loan became a problem and foreclosure was required. the first mortgage would then be a second mortgage, and that's simply not acceptable in the mortgage business.
