Wednesday, August 22, 2007

As a first time homeowner, I am learning

and learning and learning. Just when I feel like I understand things like escrow, taxes, mortgage insurance and the like, I find out I still have more to learn. I knew that each month when I made my mortgage payment that it was broken down into several different categories and I thought I understood them, turns out I did, which was a nice surprise, but I still doubt my knowledge from time to time and this time that turned out to be a good thing! I received my property tax bill the other day from the county and I was a bit confused. It was my understanding that I was paying money into my escrow account each month to build up my payment for these property taxes. So, I call the bank today because not only was I confused that I was receiving this bill, but also by the vast difference in the bill v. what my escrow account had estimated my taxes to be. A nice surprise when looking at the bill I received and hoping it was correct because it was less than half of what my escrow account had estimated. I then did the thinking of, "ok, if it's half it must be because it's for the second half of the year." I call the bank to ask what I am feeling must be a really dumb question, but as a first time homeowner, I needed to get to the bottom of this. Turns out the statement was correct, yeah, and the escrow company had only estimated my taxes based on the total taxes of my building divided by the number of units. Well, I only have a 1 bedroom condo, so my taxes of course would be smaller than someone who has a 2 or 3 bedroom unit. Yeah! Ok, so my 5 minute phone call corrected my escrow account, the future escrow payments to said account and resulted in an $1100 refund to me!

I must say between this, the refund I received right after moving in due to the square footage discrepancy, the fact that I am still not on the hook for my utilities or my condo dues, I am LOVING home ownership! So far, so good! :) I love a windfall, no matter how it comes!

No comments: