Anybody else's taxes jump way up?!

DetroitStyle

DetroitStyle

Club Member
Got a notice that our escrow was projected to be short again this year and our mortgage payment would be going up again... last year it jumped about $60/mo, this year over $100/mo. Went over some docs and saw we paid $3600 in 2014, now up to $4990 for 2016... that's a 37% increase in two years?!??




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Same here. I've been paying $150 more a month for the last year.

Steve from simple mortgage can explain this. He explained it to me once but I dont recall the specifics. Shoot him a message maybe he can explain it in this thread.
 
interestingly my payroll taxes went down. not a lot, but then again I moved up a tax bracket last year so I figured my taxes would go up. I'm hoping Trump can push out his tax plan soon. I'd love to get ano extra 15% of my money back in my pocket.
 
My property taxes went down this year, Hartland township passed a extra tax on rental properties to make up the short fall
 
DetroitStyle said:
Got a notice that our escrow was projected to be short again this year and our mortgage payment would be going up again... last year it jumped about $60/mo, this year over $100/mo. Went over some docs and saw we paid $3600 in 2014, now up to $4990 for 2016... that's a 37% increase in two years?!??




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13secSS should jump in but I don't think that's legal unless they are special assessments. I think the tax itself is capped at 3% per year or the rate of inflation, whichever is lower. See if the bill itemizes out assessments.
 
I would request a escrow account audit (a detailed explanation
of account costs).

There are pretty much only 4 things that can affect your mortgage
payment;

- Mortgage interest rate (variable rate).
- PMI
- Property tax.
- Property insurance.

In theory, you can possibly change any / all of the 4 either
up or down.
 
4Gas$ said:
I would request a escrow account audit (a detailed explanation
of account costs).

There are pretty much only 4 things that can affect your mortgage
payment;

- Mortgage interest rate (variable rate).
- PMI
- Property tax.
- Property insurance.

In theory, you can possibly change any / all of the 4 either
up or down.
Click to expand...

Good points. For some reason I thought he was just saying his taxes went up that much.
 
Escrow is a scam. They try to sell it as a service, but it is a scam. I actually had to buy my way out of it with my current mortgage but it was worth every penny (a couple hundred $ I think). With all the current mortgage regulation, escrow is now a profit center. The banks make a shitload of money on it! Think about it - you are pre-paying all that stuff, and they get to keep the money for free. It is an interest free loan for them. And what do they do for it? Send out three or for checks a year? Give me a break.

The math to calculate the escrow payment never works in your favor either. An account has a huge minimum, and they have to have it all in place months before the payments are due. You always end up with a shortfall. When you are short, the math to make up for it forces them to overcompensate. Then next year, you will probably get a refund check. The best thing to do is to do the math yourself, and if you think your escrow is going to be short at the end of the year, then put an extra $20 or so in it every month. So when they do the re-balance, it will work out. Other than that, get ready for the escrow see-saw.

-Geoff
 
I'm a firm believer in not escrowing taxes simply because why should someone else be able to make interest off my money? LOL See if you can get out of that and simply pay them yourself.
 
GTPprix said:
I'm a firm believer in not escrowing taxes simply because why should someone else be able to make interest off my money? LOL See if you can get out of that and simply pay them yourself.
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I've always paid my own property taxes. Never escrowed. Only way I'd go.
 
Most people if they aren't forced to don't have the discipline to set that money aside. Others do it out of convenience. Depending on the situation, the money you make by keeping your money is negligible at best.
 
Stalker said:
Most people if they aren't forced to don't have the discipline to set that money aside. Others do it out of convenience. Depending on the situation, the money you make by keeping your money is negligible at best.
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Personally I don't do it to make money, just to have control over my money, and when I pay the taxes.
 
I have looked into the escrow increase, it is the taxes that went up, as noted in the original post. Insurance actually went down a little


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Golden said:
Agreed.

Also, you can contest your property tax increase, just contact the city. You will have to go in for a meeting.
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X2 - Agreed.

There is a due date / deadline for doing so.

You have the option of writing a letter or appearing live
before the local tax board - read your letter IN PERSON,
it is harder to say no to a person than a letter.

You need some kind of reason / proof why your real estate
taxes should be adjusted.

I have gone before my local tax board twice, and had my taxes
lowered both times.

FYI, if you lose at the local tax board, you have a second chance
and can appeal at the state tax board. In most cases, the local board
doesn't want you going to the state board.
 
4Gas$ said:
X2 - Agreed.

There is a due date / deadline for doing so.

You have the option of writing a letter or appearing live
before the local tax board - read your letter IN PERSON,
it is harder to say no to a person than a letter.

You need some kind of reason / proof why your real estate
taxes should be adjusted.

I have gone before my local tax board twice, and had my taxes
lowered both times.

FYI, if you lose at the local tax board, you have a second chance
and can appeal at the state tax board. In most cases, the local board
doesn't want you going to the state board.
Click to expand...

I bought my old house in Milan in 2010 and went to the tax board in 2011 when they tried to increase my taxes. They tried like hell to disagree with me but ultimately lowered my taxes.

Mike, I would check with your escrow account to see why they are projecting that new number. I believe property taxes are capped at a 5% increase per year. The only way that can change is after the sale of the home.
 
Our taxes went up in the township this year again too, sucks but its still not to the level it was when I moved in. Alot of escrows require you to have 1.5-2 times what is actually needed for the year.
 
Golden said:
I bought my old house in Milan in 2010 and went to the tax board in 2011 when they tried to increase my taxes. They tried like hell to disagree with me but ultimately lowered my taxes.


Good job! You didn't take it laying down, you fought......and won!


Mike, I would check with your escrow account to see why they are projecting that new number. I believe property taxes are capped at a 5% increase per year. The only way that can change is after the sale of the home.


There are a few weird & rare things that can raise it above that. One would be if the
property was no longer your primary residence (but you still own it).
Click to expand...


:spend:
 
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