Should I pay my $700 escrow deficit now or focus on consumer debt first?

A

applebivlos

New Member
I got my mortgage back in 2022. Ever since then, my monthly payment keeps going up because of the escrow part, which covers my property taxes and homeowners insurance. So far, I've just been handling the higher payments as they come each month. But if I paid my current escrow deficit—that's about $700—all at once, my regular mortgage payment would actually drop a little from what I've been paying recently. Right now, I'm really focused on getting rid of my consumer debt. So, what would you do? Would you pay that lump sum to get a slightly lower payment (and maybe even keep paying the old, higher amount to knock down the principal faster)? Or would you let the payment kee p creeping up, stay focused on the consumer debt, and deal with the mortgage stuff later?
 
Hey, so I'm dealing with this too. They're spreading my deficit across the whole year, and I'm throwing in an extra $50 each month just to give myself a bit more breathing room. That way, next year I should be all set, and hopefully, my payment will drop a bit.
 
For a decade, this pattern repeats. I pay the lump sum upfront, then see slightly reduced monthly payments. My savings hold more than the monthly budget allows. A few years back, I began adding an extra $30 monthly to escrow it almost always covers what that lump sum would have been.
 
Hey, definitely shop around for new homeowners insurance you could really cut down that monthly payment. Skip making lump sums to your escrow account, since it doesn't earn you anything. I did some comparison shopping once and saved a huge $1200 on my insurance, which dropped my payment by $150 a month.
 
A new house required the initial homeowners insurance payment to be made directly. Subsequently, a decision was made to place the payment into escrow. It is noted that Progressive offers a discount for direct payment, whereas payments processed through the bank do not include this reduction. The intention is to cancel the escrow several months in advance, retrieve the funds, and resume direct payments to retain the discount, as the savings provide meaningful financial benefit.
 
Back
Top