I found myself calling up the mortgage company recently as they had been taking out more than necessary for the last year. What?! “That’s my money and I need it now!” Anyways – when you buy a new home they make estimates based on the previous tax payments. Turns out the previous owner had been paying more due to the fact that he had been renting out the condo and not living in it, which in turn carried over to my monthly escrow balance. Have you checked yours recently? Is your mortgage escrow too high?
As a homeowner I get a property tax reduction for living in the residence. I didn’t realize this was even a thing until fairly recently. My tax bill showed up and sure enough, there’s a $1200 homeowner discount. It’s pretty bizarre that the state is actually giving me money back, but I’ll shut my mouth and take it!
I decided to call up the mortgage company and mention this escrow account overage. They recognized it but said to call back once they paid the bill and it was re-assessed.
Calling Them Back
So I did just that – I waited and called back. This time they had to put in a request and said it would take about two weeks to re-assess and re-adjust my mortgage payments.
Great! At least I got through to them…
They actually tried to offer that I wait until next year when they re-assess again. Wait….let them earn the interest off of my escrow account while I wait until next year? No thanks!
In all honesty, the interest amount on the difference isn’t anything dramatic, but that’s my interest to earn dammit! That’s like taking too much out for taxes and not having it until later. While that may work for some, I want that money now.
Do I Even Need An Escrow?
Unfortunately, I guess I do per the requirements of the mortgage company. Many mortgage companies actually carry similar guidelines so you should check with yours if they require it. I should be able to apply for a waiver as soon as I pay off a little more of the original mortgage value, but not quite yet and it seems like there are a lot of rules behind waiving an escrow.
Who needs rules anyways?!
Hey, it’s their money. Rules are rules as long as I owe them. I could pay them back now, but then that money wouldn’t be working for me. For now, that stays stashed away in investments.
It may not be a bad idea to check and make sure your mortgage company is taking out the proper amount. Less is more in this case. There are plenty of companies out there that will capitalize on your money in order to gain themselves. Who am I to think that a mortgage company would be any different?
At the end of the day it’s your money, but it’s up to you to make sure that it’s in your hands.