We received our yearly escrow analysis yesterday, and of course they are estimating a shortage. As a whole, it really isn't too bad. We are short $123 for this year, and they are estimating an additional $12 per month for next years account. All in all...not horrible.
I am debating paying the $123 and eliminating the extra $10.71 they built in for next year to make up for it. Then our monthly bill would only go up $12.
Really....it is $12 vs $23. My gut feeling is it is easier to adjust the monthly budget to accommodate a $23 change, vs trying to find the $123 right now. We do have extra in the emergency fund (over our $1000) and we could always take it from there.
I am just glad that it wasn't a HUGE shortage. We had that happen one year, and it blew.
What would you do?
Ours did go up quite a bit this year. It has never gone up before. Maybe they incorporated all 5 yrs as it was a lot of shortage. How I wonder do they figure this? Anyway, we are letting ours roll into the mortgage only because hubby and I are both on unemployment right now and parting with the whole amount (although we have it now)would really eat up a large chunk of an emergency fund we may have a hard time contributing to
ReplyDeleteI hear ya! Two years ago I had a garage fire (fortunately, it is a free-standing garage) and my homeowners insurance tripled in cost. Which, in turn, caused my monthly mortgage + PITI to go up by nearly $200 a month. I was/am NOT a happy camper. My understanding is that after three years with no claims against my homeowners, it will again return to a reasonable amount. I hope so!
ReplyDeleteOff the subject but I just noticed your total debt is below 70K. Celebrate the little milestones! Congrats!
ReplyDeleteWe've always just let them add it on to the monthly payment. It's just easier to come up with the extra monthly vs. having to come up with the whole thing at once.
ReplyDelete@jskell - makes sense for you to roll it. Ours typically goes up a little each year, although to our surprise it went down last year. Guess they let it go down to much! Hoping you guys are gainfully employed soon.
ReplyDelete@Grace - I hope no one was hurt in your fire! But $200 a month is insane!
@Anonymous - thanks! But no celebration yet. I am just barely under 70k, and when the interest hits, I will probably be back over. So check back with me on the congrats in a few weeks. ;)
@Beating Broke - we typically roll ours too for the same reason. But this year it is a small amount, I am just wondering if it would make a difference one way or the other.