I closed on my house in July 2016. My mortgage payment was just adjusted upwards, to cover a change in
hazard insurance (+$300/yr) and property tax (+3000/yr). As best I can figure, the escrow amount described at closing was for the prorated/partial year taxes due and not the entire year. The property taxation rate, property assessed value, amount due for 2017 are all very similar to 2016. I'll follow up with the hazard insurance because that seems odd but it's not my primary concern now. Hazard insurance amount due is insignificant ($50/yr), disregard that part.
Is this normal? My monthly payment went up by 30% because of this change, I'm astonished. It seems like a huge bait and switch game perpetrated by the lender. As is common, the current mortgage holder (WF) is not the one at closing, so they have a semi-legitimate defense against this.
Since the taxes are what they are I feel like I'm stuck and I just have to adjust to this huge budgetary change.
EDIT: the 30% figure is "only" to amortize paying back the escrow account for the shortage over the last year, it goes back down to a 10% increase/month after it's paid off. UGH!
EDIT: Mystery solved? 2016 taxes due are the same as 2017 but the amount at closing seems to have been based on the 2015 taxes, at which time the property's value was assessed much lower (having only been built in 2015). Feels like the title company screwed this up but I'm back at my earlier conclusion that there's nothing I can do about this.
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