Property tax bills will be coming out sometime this month. If you have escrow accounts to pay taxes and insurance you will probably be getting a letter from your lender stating that you have too much or too little money in your escrow account to pay your taxes.
As pretty much everyone's taxes have gone up this year, it'll probably be the latter. In this case the lender goes ahead and pays your taxes even if the escrow account is short, so don't worry about that.
However, to make up the difference they will add on the amount that they had to cover to your monthly payment. And then add that amount again forecasting for the same amount of taxes next year. As you can see this can really change your payment quite a lot.
If you'd prefer not to have that high of a payment, you have the option of making a one time payment to your escrow account to cover the difference for this year. That'll save you that portion of your payment increase, but of course you'll still have the increase to prepare for next years taxes.
Hopefully this helps so the letter won't be a big surprise. If you have any questions please email me at billconover@america-lending.com
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