Thursday, August 18, 2011

They giveth and they taketh away

So I saved $60 a month on oil!  Yippee!!

I SWEAR....that same day....we got the new mortgage information.

Because of the mistake on our escrow account, our mortgage is not only going up the $41 for the missing bill....but another $60 because in one month it will fall below the federal minimum limit (we have an FHA loan) once bills are paid.  They need to build the cushion back up.  So they need to account for THAT too.

Now our mortgage is $100 more. 

And our refi that we did in January....who cares that we got a lower rate?  Our monthly out of pocket savings at this point is $100, we added $9,000 to to mortgage, and we are paying PMI for a minimum of 5 years. 

This stupid escrow....I am tempted to remove the taxes and homeowner's insurance (which BTW, doubled this year) and just keep it as the PMI.  I can do the same thing as an escrow account....put money in there until it is needed. 

We are paying $598 a MONTH just for the escrow account now.  The principal and interest payment is $1037.  PMI is about $141 a month (which is part of the escrow).  Our monthly "mortgage" payment would be about $1200 for principal, interest, and PMI (give or take...they need their cushion).  In theory it is all the same amount of money (I would need to put about $400 a month away for taxes) just burns my biscuit that this happened.

I am just venting....

Not a good day......


  1. I can't believe your mortgage went up so much. I'm sorry!

  2. Don't feel bad, we got our escrow bill last April for 698 dollars! we could either pay it in full or add $50 per month to the mortgage... happens to everybody.

    Can you cancel the escrow service? some companies don't let you according to the mortgage contract etc.


  3. Being in Canada we do not have escrow accounts. What is that exactly?? I just saved myself a whopping $15 a month by switching to a term life policy to cover my mortgage rather than PMI. Good thing is it will cover more than my mortgage amount where as the PMI would only cover the remaining mortgage balance, should one of us die.

    Sorry you just can't win for losing. Hope things turn around soon.

  4. Our insurance went from $300.00 a year to $500.00. But our value went down, so we broke even. I hate banks!

  5. Ever since we owned at least "20%" of our home, we switched to escrowing our own homeowners insurance and taxes. They take out way too much money and earn the interest on it. It's definitely a rip off. Hopefully, you'll be able to take it from escrow and pay it yourself soon! It will save you a lot of money!!

  6. Gah, whose neck can I strangle for you?? Sorry, Mysti :(

  7. Homeowner's insurance escalates by a fixed percentage per year, because they assume that costs to reconstruct go up every year, which is not necessarily true. Call the insurance company and have them reassess the house based on your square-footage and they can re-calculate the cost to re-build based on current market conditions. The premium may go down.

  8. that sucks!!! We do it ourselves & love being in control of it....

    fyi - i know how you feel - we paid off that old navy ($30 a month min & then I was pumped about that... then the same moment, I get our water bill & it went up by $38! it seems that we can never make progress...)