 mortgage payment increase (by samuel caceres [TX]) Jul 20, 2017 1:05 PM
 mortgage payment increase (by David [MI]) Jul 20, 2017 1:53 PM
mortgage payment increase (by NE [PA]) Jul 20, 2017 2:32 PM
mortgage payment increase (by Mike45 [NV]) Jul 20, 2017 3:35 PM
mortgage payment increase (by S i d [MO]) Jul 20, 2017 3:54 PM
mortgage payment increase (by JB [OH]) Jul 20, 2017 4:13 PM
mortgage payment increase (by Danny [OH]) Jul 21, 2017 4:11 AM
mortgage payment increase (by Pmh [TX]) Jul 21, 2017 3:45 PM
mortgage payment increase (by Pmh [TX]) Jul 21, 2017 3:51 PM
mortgage payment increase (by BRAD 20,000 [IN]) Jul 21, 2017 10:47 PM
mortgage payment increase (by Ray-N-Pa [PA]) Jul 23, 2017 2:25 PM
mortgage payment increase (by samuel caceres [TX]) Posted on: Jul 20, 2017 1:05 PM
Message:
My bank did an escrow analysis on one of my properties and said I was about 300 short which will raise my monthly payment by about 13 dollars. My tenant just moved into that house in June so I cant pass the increase onto the tenant. I have the option of paying the shortage and actually lowering my payment by 14 dollars but I am saving all my monthly cash flow because I am planning on buying another property next March. My question is should I pay the shortage from my cash flow or just wait until next year and increase the rent. I could also increase the rent on one of my other properties to offset the increase but that would not happen till January. Thanks for your time --75.87.xxx.xxx |
mortgage payment increase (by David [MI]) Posted on: Jul 20, 2017 1:53 PM
Message:
Your increase of $13 may not reflect the actual increase in your monthly PITI. Escrow calculation is funny that way.
You should check what your actual increases in prop tax and insurance are (I assume you have a fixed rate mortgage) --12.156.xxx.xx |
mortgage payment increase (by NE [PA]) Posted on: Jul 20, 2017 2:32 PM
Message:
Just suck it up. Things fluctuate all the time. You're after the long game here. --74.47.xxx.xxx |
mortgage payment increase (by Mike45 [NV]) Posted on: Jul 20, 2017 3:35 PM
Message:
I guess I am blessed that a $13/mo increase in my escrow payments would not cause me any issues. But if it did, I'd skip one package of Hostess Cupcakes each week, if necessary.
I would not increase the rent (now or in the future) -- an increase in my costs does not change the market rent value of the property.
--71.38.xx.xxx |
mortgage payment increase (by S i d [MO]) Posted on: Jul 20, 2017 3:54 PM
Message:
Samuel... $13/month less to save up to buy another property? You are literally talking about $146 per year. That is not going to make or break your plan to grow a real estate empire. Don't worry about it: just pay the increased monthly payment. I'll tell you why in the next paragraph.
Escrow adjustments are a common theme when you have a loan that required escrow for taxes and insurance. But the same thing would have happened if you just paid your taxes and insurance directly. The one BONUS I've found from escrow is my account is always short, so my payment always goes UP each year. BUT what that means is the bank paid my taxes and insurance for me using money I never gave them (an interest free loan...take that, LENDERS!) and all I'm doing is paying them back. So if you just let them increase your payment, you're paying off last year's free loan in installments. Keep that up and enjoy using the bank's money for free. They make enough off of us in interest...time to reverse course.
Make a yearly habit of increasing your rents no matter what, unless the rents are just dragging in your area. Then you'll never get caught holding the bag again. 2-3% per year is a common adjustment. Write it into your lease so it happens automatically. --173.19.xx.xxx |
mortgage payment increase (by JB [OH]) Posted on: Jul 20, 2017 4:13 PM
Message:
Sid, You have it in reverse. You pay upfront monthly for taxes and insurance and the account is full before payment. The bank uses your money free. We never escrow and use all that money to work with. --24.123.x.xxx |
mortgage payment increase (by Danny [OH]) Posted on: Jul 21, 2017 4:11 AM
Message:
Pay the escrow amount in full, make sure it goes to escrow, call them to confirm, continue making the same payments. --74.128.xxx.xx |
mortgage payment increase (by Pmh [TX]) Posted on: Jul 21, 2017 3:45 PM
Message:
If you need to increase rent to cover the extra $13 a month then other issues. --104.218.xxx.xx |
mortgage payment increase (by Pmh [TX]) Posted on: Jul 21, 2017 3:51 PM
Message:
JB is correct Sid. you are just replenishing what was already held back. I have no escrows on my rentals but deal with this for the investor I work for. hotels & marinas. --104.218.xxx.xx |
mortgage payment increase (by BRAD 20,000 [IN]) Posted on: Jul 21, 2017 10:47 PM
Message:
Samuel,
ALWAYS increase your rents each year. This has nothing to do with your payments.
$13 per month is only $156 per year.
My real concern is your worry over $13 or $300. This is a grain of sand in your shoe, not even a pebble. Neither way should make a difference in your business.
If money is that tight consider some creative ways to increase your rental income like PayDayPlanRent (adds a 13th month of rent every year), allow animals for a fee, offer appliance rental...
BRAD --68.50.xx.xxx |
mortgage payment increase (by Ray-N-Pa [PA]) Posted on: Jul 23, 2017 2:25 PM
Message:
Yes $13 a month does add up.........but if $300 a year causes any type of fear at all in you - get out of the business now. Your ratios on your building are too razor thin --24.239.xx.xxx |
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