Mortgage Increase Soon

Well, it was bound to happen!  Actually, it’s a good thing really. I will explain that in a moment.


I got a notice from the bank about a month ago that my property tax escrow account is too low and would increase approximately $300.00 a year starting in January 2015. (My taxes are impounded.)

I had the option to pay it in full or do nothing and deal with the mortgage increase of about $25.00.

I decided to do nothing. Let me tell you why.

Last year there was a small increase and I paid it. I didn’t really want to increase my monthly expenses.

But guess what, my mortgage went up anyway!    I have no idea what they did with the extra I paid.  I didn’t even bother to find out.  It was not that much.

However, this increase, over $300.00 is a bigger deal.  I decided not to pay it because it might not get applied anyway.

I scanned the document and sent it to my lawyer jn an email.   Hopefully, the only thing I need to do now is just pay my mortgage as always.   We shall see what they say.

Why this is good news?   It just means that my property value has increased!


That is a snippet from Zillow and we all know Zillow is usually very optimistic.  My condo is not worth $330,000 but it is now out from underwater and I will have equity if all stays on this track by the time I reach successful discharge in three  more years!  Edit:  Added link to 2017 Real Estate Forecast

That is why I do not mind paying a bit more in escrow.  It just means the condo is worth more today than it was when I filed.  And that means I might have made a good decision (albeit a very difficult one) after all.

And that is a very good thing!



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