Luaderdale SS Posted January 26, 2007 Report Share Posted January 26, 2007 I am starting to hate Florida as a home owner. I have owned my home for 4 years and the taxes and insurance are getting out of control. Every year I get a letter from my mortgage company that my esrow account is short and they require an additional payment. It ranged from 1100 to now 1397, thats not all! On top of the additional payment my monthly payments have gone up 376 bucks since the end of the first year! I am getting concerned cause at this rate my monthly payment after the remaining 26 years will be like 4165.00 (based on the roughly 125 a month increase) aaaaaahhhhh!!!! I'm a single guy no second income from a spouse and It scares the sh*t out of me, talk about feeling powerless. Sorry, had to blow off some steam, just pissed off... So much for the American dream of home ownership-, bah humbug Quote Link to comment Share on other sites More sharing options...
dannyc_2006_SS Posted January 26, 2007 Report Share Posted January 26, 2007 Yup, It is defenitely out of control. And then when a hurricane blows over your house, they are reluctant to pay you for the damage. I sometimes wonder what is the point of having insurance.... Quote Link to comment Share on other sites More sharing options...
Black2003SS Posted January 26, 2007 Report Share Posted January 26, 2007 You are in one of the worst states as far as cost for home ownership. You guys have high insurance because of natural disaster threats, you guys have high taxes because of the programs for the poor and elderly (who dont pay taxes btw, sure you knew that), and every time you want to buy or refinance, depending on the county, your beautiful state and county takes a piece of the pie as well, costing you more in the long run. At least your state is still seeing some appreciation unlike the most of the country (especially the midwest). I'm a mortgage banker licensed in 45 states right now and Florida is about third as expenses go for mortgage transactions behind New York (outrageous) and Pennsylvania. Shoot me a pm if you have any questions about financing or improving your situation. I work for Quicken Loans and we have a very good, long standing reputation. Quote Link to comment Share on other sites More sharing options...
rivierakid55 Posted January 26, 2007 Report Share Posted January 26, 2007 two words. homestead act. Quote Link to comment Share on other sites More sharing options...
Fireman31 Posted January 26, 2007 Report Share Posted January 26, 2007 trust me, it sucks here in NY too Quote Link to comment Share on other sites More sharing options...
perk03z06 Posted January 26, 2007 Report Share Posted January 26, 2007 Not sure 4165 is realistic, dude. First 10 yrs. of payments are interest ... & then after that you should be paying on principle, & the payment shouldn't be as bad ... presuming you didn't get an ARM. Is that right, Black2003SS? Quote Link to comment Share on other sites More sharing options...
Kyle's03SilveradoSS Posted January 26, 2007 Report Share Posted January 26, 2007 I'm not suprised, George W's brother is the Governor over there. He still is isn't he? Quote Link to comment Share on other sites More sharing options...
eamonnschevy Posted January 26, 2007 Report Share Posted January 26, 2007 Sorry to hear that buddy... but its the same the world over... Politicians are all lying thieving cheating bastard's they make laws and taxes and raise their own wage so the laws/taxes don't affect them.. and talking of taxes here in the UK we get taxed on tax now that really sucks... when my truck arrives i will have to pay 22% tax on the truck/shipping and insurance.... then they add 17.5% tax on that figure, then tax on insurance, License and Gas ($9.00 a gallon) Death and Taxes the only things that are guaranteed... my rant over and i don't care coz my truck will be in the UK next week Quote Link to comment Share on other sites More sharing options...
Black2003SS Posted January 26, 2007 Report Share Posted January 26, 2007 His payment will never be that high unless he did get into an ARM and his taxes double+. I'm not sure if he has interest only or not, but if he did, it wouldn't go that high even if he never paid any principle during the first ten years. Example...on a $200k loan at 6.0% (interest only), your interest only payment for the first ten years would be $1,000 per month. At the ten year mark (assuming $0 paid towards the balance in the first ten years), the loan effectively switches to a 20 year fixed P&I loan so that it fully amortizes by the the end of the 30 years. The P&I payment would jump to $1,432.86. So about half. These figures obviously do not account for escrow accounts etc. But 90% of 30 year interest only loans will never reach that point when the average home owner will have 11 loans over a lifetime and either refinance or move every 5 years (on average). The main concerns to have with interest only is if your home will appreciate or not and you do something productive with the money you are saving (like paying high interest debt or increasing your 401k/IRA contributions). Quote Link to comment Share on other sites More sharing options...
perk03z06 Posted January 26, 2007 Report Share Posted January 26, 2007 Black2003SS, not to try to steer off topic here, but I am looking into buying a home in the next year, and I was wondering about the difference between a 100% mortgage w/ PMI vs. an 80/20 loan ... fixed or ARM. What are the pros and cons of each ... ? I am trying to make myself a table to calculate everything so I have no surprises after I close on the house, and to truly see how much home I can afford. Quote Link to comment Share on other sites More sharing options...
Luaderdale SS Posted January 26, 2007 Author Report Share Posted January 26, 2007 (edited) Not sure 4165 is realistic, dude. First 10 yrs. of payments are interest ... & then after that you should be paying on principle, & the payment shouldn't be as bad ... presuming you didn't get an ARM. Is that right, Black2003SS? OK I was not being serious on the 4k a month payment. I was saying base on the fact that my mortgage paymant has increased roughly 125 bucks a year for the first 4 years, then after the remaining 26 it would be close to that (125 x 26 years =3250 on top of the 1267 payment now, is like 4500 bucks). I know (hope) this is not going to happen. I have a fixed 6% fha loan & homestead with a balance of like 96k, I put alot down. The issue is the tax (capped @ 3% increase a year) and insurance keep going up. like I said I now pay almost 400 bucks more a month then when I started the loan. My other property which is not homestead exempt had taxes that trippled from last year! The thing is I have good habbits like sending an extra principle only payment every year, no credit card debit (pay it monthly), no wife, no kids, and its still tuff. I have no idea how some people do it? I also just got a letter from the county saying it will cost me 2600 bucks to upgrade my sewer system, and it must be done in 1 year....AAAARRRRRGGGGGHHHHH!!!!!!! AND.. on top of all that, I want to strat modding my truck Had to blow off some steam with this topic, so thanks for listening Edited January 27, 2007 by Luaderdale SS (see edit history) Quote Link to comment Share on other sites More sharing options...
gixxerrider Posted January 26, 2007 Report Share Posted January 26, 2007 From what I have read buy your PMI up front its cheaper. Sorry about your taxes. Quote Link to comment Share on other sites More sharing options...
Luaderdale SS Posted January 26, 2007 Author Report Share Posted January 26, 2007 (edited) From what I have read buy your PMI up front its cheaper. Sorry about your taxes. Didnt know that was an option, plus I only have 11 more months of PMI. I am looking forward to dropping it and getting the PMI money back at the end of the year. BTW has anyone done this yet? My loan to value is far past the 70% range, more like 50% range or less, but Wells fargo makes you wait five years to drop it. Do you get it all back or just part of it? Does anyone know about PMI refunds? Edited January 27, 2007 by Luaderdale SS (see edit history) Quote Link to comment Share on other sites More sharing options...
Luaderdale SS Posted January 27, 2007 Author Report Share Posted January 27, 2007 Does anyone know about PMI refunds? Anyone ? Quote Link to comment Share on other sites More sharing options...
DeeHutch Posted January 27, 2007 Report Share Posted January 27, 2007 I"m taking it you're on a variable rate loan currently? Why not just refinance to a fixed rate mortgage? Sounds easy enough to me...... Quote Link to comment Share on other sites More sharing options...
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