Pay a large portion of escrow shortage, will monthly amount decrease right away?


Let’s Pretend I’m 5 yrs old and have a mortgage. The mortgage company miscalculated and didn’t pull enough escrow each month now our mortgage payment has skyrocketed. If I am able to pay a good portion of the escrow shortage, will my monthly mortgage payment be reduced? Is that only upon an escrow analysis? Will it adjust based on the remaining due? How often can you have your escrow reevaluated? I’m thinking like a car insurance payment plan, if I pay more sometime it will readjust for the ext month to be a lower amount due.

In: 0

Anonymous 0 Comments

No, your shortage is separate from your mortgage payment. The shortage is what was paid in taxes compared to what was anticipated. Your mortgage payment is your current principal + interest + anticipated tax payments.

You can call the County Assessor or Auditor and inquire about tax exemptions you might qualify for to lower your taxes.

For example, in my state, DNR has an exemption for classifying 10+ acres of wood as a Classified Forest or Wetlands and property taxes are lowered to $1 per acre.