Results 1 to 6 of 6

Thread: Escrow Increase: Pay in full or over course of year

  1. #1

    Join Date
    Sep 2006
    Location
    Upstate NY
    Posts
    3,872
    Blog Entries
    46

    Default Escrow Increase: Pay in full or over course of year

    We were notified we have an escrow shortage (mortgage company requires a large buffer) and we can pay the shortage in full or over 12 months. In the past when this has happened, we've paid it upfront some years and we've averaged it out others. Some years we get money back. Much of it depends on tax increases and dates of payment.

    I'm sure it's six to one, half a dozen to the other, but I'm thinking this time we're just going to add the extra payment to the monthly escrow payment even though we could pay the shortfall tomorrow. Averaging it out over 12 months is interest free since it's only escrow. We're not losing any money by averaging it out and it's also not a big hit to our account up front.

    Any thoughts appreciated.


  2.  
  3. #2

    Join Date
    Sep 2006
    Location
    Rocky Mountain High
    Posts
    6,960

    Default Re: Escrow Increase: Pay in full or over course of year

    The wife doesn't have us escrow anything. Doesn't want to give the bank access to our money. Personal preference.

    Quote Originally Posted by Bullitt View Post
    We were notified we have an escrow shortage (mortgage company requires a large buffer) and we can pay the shortage in full or over 12 months. In the past when this has happened, we've paid it upfront some years and we've averaged it out others. Some years we get money back. Much of it depends on tax increases and dates of payment.

    I'm sure it's six to one, half a dozen to the other, but I'm thinking this time we're just going to add the extra payment to the monthly escrow payment even though we could pay the shortfall tomorrow. Averaging it out over 12 months is interest free since it's only escrow. We're not losing any money by averaging it out and it's also not a big hit to our account up front.

    Any thoughts appreciated.
    Weatherweenie's Account Talk
    Teddy Roosevelt: Patriotism means to stand by the country. It does not mean to stand by the president or any other public official. Retired on November 30, 2023 with 30+ years of service.

  4.  
  5. #3

    Join Date
    Apr 2008
    Location
    Cleveland, Ohio
    Posts
    12,130

    Default Re: Escrow Increase: Pay in full or over course of year

    Quote Originally Posted by Bullitt View Post
    We were notified we have an escrow shortage (mortgage company requires a large buffer) and we can pay the shortage in full or over 12 months. In the past when this has happened, we've paid it upfront some years and we've averaged it out others. Some years we get money back. Much of it depends on tax increases and dates of payment.

    I'm sure it's six to one, half a dozen to the other, but I'm thinking this time we're just going to add the extra payment to the monthly escrow payment even though we could pay the shortfall tomorrow. Averaging it out over 12 months is interest free since it's only escrow. We're not losing any money by averaging it out and it's also not a big hit to our account up front.

    Any thoughts appreciated.
    If it's not a large amount (less than $500) I would pay it up front.
    May the force be with us.

  6.  
  7. #4

    Join Date
    Sep 2006
    Location
    Upstate NY
    Posts
    3,872
    Blog Entries
    46

    Default Re: Escrow Increase: Pay in full or over course of year

    Quote Originally Posted by weatherweenie View Post
    The wife doesn't have us escrow anything.
    Our house will be paid off before you retire in 2023. Once that happens, the escrow account will be gone too. I don't think these accounts are a bad thing. It does pay interest, but in a zero interest rate world, it's not a deal maker.

    Quote Originally Posted by nasa1974 View Post
    If it's not a large amount (less than $500) I would pay it up front.
    About $280 more than that.

  8.  
  9. #5

    Join Date
    May 2011
    Location
    Florida
    Posts
    1,840
    Blog Entries
    6

    Default Re: Escrow Increase: Pay in full or over course of year

    Interesting discussion. I'm in the same boat, though my escrow increase was much more. Reason is property taxes shot up. Right now we are paying the installments just because that is the default option.

  10.  
  11. #6

    Join Date
    Sep 2006
    Location
    Upstate NY
    Posts
    3,872
    Blog Entries
    46

    Default Re: Escrow Increase: Pay in full or over course of year

    We're probably just going to average it in this time.

    I looked back and there were some years we had increases and others got money back. I understand where they are coming from in having a buffer since insurance and taxes inevitably rise, but I think a $1300 buffer is high (Wells Fargo).

  12.  

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
S&P500 (C Fund) (delayed)
Escrow Increase: Pay in full or over course of year
(Stockcharts.com Real-time)
DWCPF (S Fund) (delayed)
Escrow Increase: Pay in full or over course of year
(Stockcharts.com Real-time)
EFA (I Fund) (delayed)
Escrow Increase: Pay in full or over course of year
(Stockcharts.com Real-time)
BND (F Fund) (delayed)
Escrow Increase: Pay in full or over course of year
(Stockcharts.com Real-time)

Yahoo Finance Realtime TSP Fund Tracking Index Quotes