Don’t be surprised if your mortgage payment takes a big jump. Local property taxes are rising quickly, as well as insurance rates in some areas due to natural disasters. In turn mortgage companies who provide an escrow service to home owners are raising escrow payment amounts to cover the rising costs. Plus, if your property taxes or insurance rates jump above expected amounts, mortgage companies will ask you to pay an even higher payment due to the underestimation. To avoid these ‘surprise’ expenses, notify your mortgage lender when local property taxes or insurance amounts increase. Consider filing an appeal with your tax assessor to lower the assessed value of your home. Or, ask for an immediate adjustment in your mortgage payment to avoid these unexpected jumps in payments later.
