If you’re a homeowner, homebuyer, or anyone with a mortgage that escrows—this blog is for you! Have you noticed a change in your monthly mortgage payments?
1️⃣ Did you know that property taxes and insurance can significantly affect your mortgage payments?
2️⃣ Property taxes are based on past assessments, while insurance premiums are for the year ahead.
3️⃣ Your escrow account is rebalanced once, or sometimes twice a year. Your Mortgage Lender will analyze your escrow account to check for any potential shortages.
What ways are there to help control the ever-rising escrow account?
✔️ Review Your Insurance Policy: Reach out to discuss your homeowner’s policy to identify areas where premiums can be lowered.
✔️ Are you bundling your home and auto insurance? Bundling with your auto often reduces your home insurance premium, which will, in turn, lower your mortgage payment at the next escrow rebalance.
✔️ Appeal Property Taxes: Consider starting the process of appealing your property taxes.
🔵 How do you start this process? You will file the appeal in the district court in the county where you live.
🔵 When: your appeal must be started no later than 30 days after the date the decision of the County Board of Equalization was mailed to you.
🔵 What you will need: 3 separate forms – Petition to Appeal Property Valuation Assessment, District Civil Summons, District Civil Case Cover Sheet. I can put a link in the comments to help you locate these forms.
✔️ Ways to lower your insurance premium: consider higher deductibles. We can raise your wind and hail deductible or deductible for all other losses. Now, make sure you know what you are signing up for. If you opt for a 1% deductible, this amount can increase year over year as the price of your home goes up. Let’s say you have a $500,000 on your property coverage, you select a 1% wind and hail deductible – you are now on the hook for $5000 if you need a new roof. If your property coverage goes up to $600,000 now you have a $6000 deductible.
Our dedicated team is here to help you and answer any questions you may have. We are committed to making sure you have all the information you need to avoid any surprise payment increases.
Call/text: 720-807-9212 or email: insurance@migcolorado.com
[…] If you have questions about how your escrow payment is determined, check out our blog on escrow payments Managing Escrow: Tips for Homeowners and Homebuyers. […]