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Taxes and Escrow.

Baine

Shared on Tue, 10/02/2007 - 11:37

Being a first time home buyer, I learned alot of things pretty fast and furiously.  The financial obligations, tax laws, escrow and deductions.  It was alot of info thrown at me in rapid succession and I had to sit back and shake and shudder as I tried to sort it all out in my head. 

I got a fairly good interest rate considering my credit score was in the moderate range.  The house wasn't really really expensive, it was under 200K.  The monthly payments were what I make with one paycheck a month if I don't do any overtime. So we were all set.  My wife has a decent job as office manager to a Vascular specialist in town, so she makes a decent wage.  Combined with my other paycheck of the month, we were all set.  We could get some extras, open two lines of credit, one at a furniture store and the second at Circuit City, and get some stuff to make the house a home.

Well, of course, every year taxes go up.....and with the taxes, my mortage payment goes up to make up the difference in escrow.  I got one letter that let me know of the changes, upping my payment by about 80bucks a month.  Which was ok.  I can deal with that.   This weekend, I got another one, letting me know it was projected to still be 1,080 bucks short still, so they were upping it again.  So this year, my mortage payment has gone up 175bucks a month.  Not a HUGE deal, but I can't help but worry about this process repeating over and over and over as the years go by. 

I need to win the lottery. 

My anxiety levels are starting to peek.  Money matters have always done that to me.  I am missing sleep.  I am grumpy as shit.  I am shocked that I am not on mood altering medication.

Comments

TANK's picture
Submitted by TANK on Tue, 10/02/2007 - 12:56
Property taxes will kill ya. I think if you don't have kids you should have to pay taxes for schools. Where is that money going anyway, it sure as hell wasn't going to the kids when mine were in school!
English_C6H6's picture
Submitted by English_C6H6 on Tue, 10/02/2007 - 13:30
Have about 7 kids, that way you get the most out of those taxes. ;)
meemoos's picture
Submitted by meemoos on Tue, 10/02/2007 - 15:01
my property taxes used to be $1100/yr. (1/3 acre). Then I moved less then a mile away---UP the hill w/a PATCH of grass. Taxes now...$3200/yr. SHIIIIT F-CK!
ekattan's picture
Submitted by ekattan on Tue, 10/02/2007 - 11:41
Mortgage payment are going insane right now. Good luck with that bro cause it's only getting worse.
TDrag27's picture
Submitted by TDrag27 on Tue, 10/02/2007 - 11:41
Make sure you vote every year and say no to votes that will give schools more money...Muahahahha.
UnwashedMass's picture
Submitted by UnwashedMass on Tue, 10/02/2007 - 11:49
Good luck- money woes are the worst. It'll level out soon. Go whip the taxman's ass. You'll feel better when you sit in your cell. the townsfolk will probably pitch in to bail you out. I would, but I'm a giver, ya know.
TANK's picture
Submitted by TANK on Tue, 10/02/2007 - 11:51
We're house hunting right now too, the market has declined significantly were I am so it's time to pounce. I don't know anything about all the financial stuff either. We're pre-approved up to a certain amount and i think we're going to withdraw from 401k to make the down payment hopefully to drop the price to 417k on the mortgage so it's not considered 'jumbo' which most of them are in Northern California (mean house price here is 650k). My wife's dad is an appraiser so we're getting some good advice from him. In fact tonight 'm leaving work early to go to the city planners office to see what the original plans are from the house to see what's been changed via permit and what 's been changed illegally. Got a call in to the police to make sure no drug problems have been repoted there especially Meth given it's explosive nature. And we're going a 2nd walk through with some friends who are in the construction industry. So it's going ot be a busy night.
Baine's picture
Submitted by Baine on Tue, 10/02/2007 - 11:53
No meth lab at my place. Just shitty paint work.
RIGHT_WINGAMER's picture
Submitted by RIGHT_WINGAMER on Tue, 10/02/2007 - 12:08
Damn that sucks. Is it a fixed rate? That big of a jump seems to me like your in an ARM or something. I mean my taxes have gone up but not like that...granted we are in different parts of the country.
Baine's picture
Submitted by Baine on Tue, 10/02/2007 - 12:15
yep, fixed rate mortage, its the school taxes here that have gone up ALOT, property tax has gone up, but the school taxes are rising quick.

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