CyndiLooWho
DIS Veteran
- Joined
- Apr 20, 2009
- Messages
- 1,400
I think the poster right above me has it right.
Also, if the bank is raising your payment in ANY way, they have to provide the reason. If it's the escrow (which it probably is), then by law they have to provide you with a detailed analysis of every transaction that came out of escrow last year (or last escrow analysis), shortfall or overage based on those transactions, and the projections for the next year. You have to have a certain amount (maybe 2x the largest payment month) in escrow at all times, so they fix it to get to that amount.
They will also provide you with the opportunity to pay the shortfall in full to keep your payment from rising so much. We've had years that we paid that amount to keep our escrow payment closer to level. That's always an option - it's sometimes easier to pull $600 out of savings and call it "emergency" spending than to add more money to a "fixed" payment.
Also, if the bank is raising your payment in ANY way, they have to provide the reason. If it's the escrow (which it probably is), then by law they have to provide you with a detailed analysis of every transaction that came out of escrow last year (or last escrow analysis), shortfall or overage based on those transactions, and the projections for the next year. You have to have a certain amount (maybe 2x the largest payment month) in escrow at all times, so they fix it to get to that amount.
They will also provide you with the opportunity to pay the shortfall in full to keep your payment from rising so much. We've had years that we paid that amount to keep our escrow payment closer to level. That's always an option - it's sometimes easier to pull $600 out of savings and call it "emergency" spending than to add more money to a "fixed" payment.
