Eating escrow
Last year, you’ll remember, the bank that holds the note on my house, anticipating that the escrow account from which taxes and insurance are paid would come up eight cents short for the year, raised my monthly payment by a buck-eighty to compensate.
This year, the escrow account is projected to run short by nine cents, so they duly … um, reduced the payment by twenty-three cents?
I will never understand banks.
McGehee »
27 March 2009 · 4:40 pm
They’re trying to avoid making a profit. To make a profit in 2009 is a capital(ist) offense.
Brian J. »
27 March 2009 · 8:16 pm
Don’t bother trying. Once they’re all run by the government, trying to understand will be treasonous.
Michael Bates »
27 March 2009 · 11:58 pm
This sort of thinking may explain why the Cockneys use “Merchant Banker” as rhyming slang for a particular sort of person, rather than, say, “Anchor.”
Tatyana »
28 March 2009 · 10:09 am
Why don’t you call your mortgage bank and try to negotiate canceling escrow altogether? After “n” number of years you’ve paid your mortgage they should be able to see you’re responsible enough to pay your own property taxes yourself.
CGHill »
28 March 2009 · 11:04 am
And give up easy blogfodder?
Actually, I figure I pulled off the deal of the year when I managed to snag this loan without either the full 20 percent down or having to pay mortgage insurance; I have been generally unwilling to push my luck further. (Which reluctance, given the horror stories the “news” keeps finding, seems ever more justified.)
Tatyana »
28 March 2009 · 4:16 pm
That was then and this is now.
Since you’ve lived in your house for a few years already, I’m sure you passed the 20% equity divide. Even with saving rates as low as they are now, it makes no sense whatsoever to give your bank the chance to collect on your money instead of you. I’m sure you can find better uses for your quarterly payments than send it to the bank – what, 2 quarters in advance? 3?
As to blogfodder – the topic easily replaceable by 1-3 shoes posts.
CGHill »
28 March 2009 · 5:49 pm
I’m waiting to see if the state requires the bank to pay interest on the escrow account.
Then again, the interest on $1700 a year these days wouldn’t buy dinner, unless I blew off the wine list.
Tatyana »
28 March 2009 · 6:20 pm
So how many dinners sans wine they had on you so far?
CGHill »
28 March 2009 · 6:49 pm
Probably five, if they went alone, which no one does anymore.