PARAMOUNT MORTGAGE - LENDER'S BLOG

by Jerri Stroud of the St. Louis Post Dispatch

Remember that property tax bill you got? Was it signficantly higher than last year's bill?

What about your homeowners' insurance? Did it go up, too?

Ruth Battle, senior vice president of Paramount Mortgage Co. in Creve Coeur, already has done the math on her tax bill. "For me personally, this is going to cost another $200 a month in mortgage payments," she said.

Battle said taxpayers with adjustable mortgages could face a higher escrow payment in addition to any adjustment in the mortgage. However, the date for adjusting the mortgage depends on when you took out the loan, not on the annual escrow review.

One way to reduce the pain is to call the mortgage company now, find out how much is in the escrow account and how much the shortage would be after the taxes and insurance are paid. If you have enough money to cover the shortage, you could add money to your escrow account before Dec. 31. That way, next year's payments only need to cover next year's bills.

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