Ask Terry Questions Overdrawn escrow &; mortgage payment

Overdrawn escrow &; mortgage payment

By Terry Savage on November 04, 2023 | Housing / Real Estate

I really messed up & didn’t pay attention to a huge property tax increase last year. My mortgage company has increased my monthly from $1800 to $3100 to make up the deficit in my escrow.
I’m retired (since 3/23) my husband will be working for at least 4 more years. We owe $35,000 on the house with 2 more years on the mortgage. Should we pay the mortgage off early in January or try to add additional $ to the escrow acct?
We do have approx $750,000 for retirement & the house is valued @ $450,000.
Thank you

Terry Says

A lot depends on your mortgage rate. If it’s below 5% you should probably hang on to it.
But you’re just playing a “shell game” with yourself by asking that question.
The REAL question is, given higher property taxes can you afford to stay in your home??
Or should you be thinking about selling and moving to a less expensive place now. It’s time to start thinking about that — especially now, while you have flexibility and your husband is still working.



a personal
finance question