STOP house payment increases

Robert here. Another often-overlooked reality for first-time home buyers is how property taxes can cause a payment increase and lead to an unexpected payment shock. @shares_jennjenn_r shares her personal story of mortgage remorse after her mortgage payment jumped by $428 in just one year. She explains how her escrow account didn’t have enough funds to cover the higher taxes. I’ll explain the key factors behind these increases, including how local tax appraisal districts assess home values for new construction and pre-existing homes. Plus, I’ll cover practical steps to estimate your future property taxes and explore potential exemptions to help you avoid surprises. Don't let tax miscalculations derail your budget—watch to stay ahead!

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⏰ Time Stamps ⏰

00:00 Introduction: Preventing Unexpected Costs
00:13 Personal Experience: Mortgage Payment Shock
00:42 Understanding Property Taxes
02:35 Impact of Property Value on Taxes
03:18 Dealing with Pre-existing Homes
04:38 The Importance of Transparency from Lenders and Realtors
06:09 Consumer Accountability and Informed Decisions
07:34 Conclusion: Planning and Resources

🙋 - Do you have questions? Drop it in the comment box. 👇🏾

About: In this video, Robert

▶️ 𝐇𝐀𝐒𝐇𝐓𝐀𝐆𝐒: #buyersremorse #howtobuyahouse #homebuyer #homebuyerguide #homebuyerstips #homeownershipgoals #lend2usa end2usa #robertlewis

✖️ 𝐂𝐎𝐏𝐘𝐑𝐈𝐆𝐇𝐓 𝐍𝐎𝐓𝐈𝐂𝐄: This video and my YouTube channel contain dialog, music, and images that are property of "Lend2USA" You are authorized to share the video link and channel and embed this video in your website or others as long as a link back to my YouTube Channel is provided.
@Lend2USA

— DISCLAIMER —
Robert Lewis is a Federal Mortgage Loan Originator (NMLS 180100) licensed in all 50 states with an Equal Housing Lender, American Mortgage Bank, Inc (NMLS 1151140). Separately, Robert owns Lend2USA, an education company. Lend2USA is not a lender, does not issue loan qualifications, and does not extend credit of any kind. This video is only for educational usage. All calculations should be verified independently. This video is not an offer to lend and should not be used directly to make decisions on home offers, purchasing decisions, or loan selections. It is not guaranteed to provide accurate results or imply lending terms, qualification amounts, or real estate advice. Seek counsel from a licensed real estate agent, loan originator, financial planner, accountant, and/or attorney for real estate, legal, and/or financial advice. American Mortgage Bank, Inc. is not affiliated with the VA, FHA, or any other government agency. This video has not been approved by any government agency.

American Mortgage Bank, Inc
3401 NW 63rd St, Suite 620
Oklahoma City, OK, 73116
405-283-8800@
NMLS 1151140
Equal Housing Lender

[LENDUSA]

Hi Future homeowners! A 15 minute call is all it takes to get started. Book you free consultation

[javierosorio]

I just got my new year rate . Went up by 82$ from 1158 to 1240. Been at my home since 2007, so for 18 years it’s been about 1125 $, when I got my home it was 119, 000 now it’s 300, 000 . So every year is have to negotiate home insurance and fighting property increases.(Duncanville, TX) 4 bed 3 bath two car garage. Well at least my home will be paid in 2030. And I retire in 2028. At 50 years old.

[Dorothyredshz]

Glad to see people getting educated, great video!!!❤

[terencelockette]

Great video bro. Only thing I would've added for a video such as this escrow. A mortgage payment will only increase if you have an escrow account set up which is used to pay your property tax and MI on your behalf. Each year the lender performs an escrow analysis to determine whether (1) you'll have enough to cover the upcoming tax and MI payments and (2) if not, what the shortage amount is going to be and then calculating the increased amount spread over the next 12 months. If there is a shortage, you have an option to pay the shortage in which your payment may still increase slightly or could change dramatically if you don't pay the shortage; both based on the analysis.

My mortgage payment started around $1150 just like her and increased slightly over the years. I refinanced in 2021 and up until this past Feb, my mortgage was over $1500 and was about to go up to $1710 as of March. One tactic I knew about and that I took advantage of was a mortgage recast where I can put down a large lump sum principal reduction payment plus a $250 processing fee. Because I had paid my refinanced mortgage of $217, 000 in 2021 down to $152, 000, I put down $10k for a recast, found cheaper HOI, and knocked my total mortgage down to under $1, 300. In addition, I had them run an out of cycle escrow analysis based on my new homeowners insurance and knocked that part of my payment down (resulting in a payment under $1300).

One last tip I'll share in relation to escrow is that the lender is required by law to keep 2 months worth of payments for taxes and HOI each. Any excess is refunded back to as required by law. The tip is that if you keep more than the required amount in escrow, when the analysis is ran, there will never be a shortage and your mortgage should never increase. You may need to adjust the excess amount based on the increase of your property tax and HOI. The lender will refund you this amount back but you can still put it back into escrow each year they send it back to you.

[MrsBanks]

Our property taxes increased by $400 and homeowners insurance by $500. We’re now expecting our mortgage payment to increase. Mortgage prices are increasing, rent prices are increasing, you can’t win for losing.

[Goldenswayzee]

Glad I was led to your channel. Me and my wife are looking to buy here soon in the next few years here in Oklahoma. Gonna check your channel out to get some good game. Thanks for the channel 🙏🏾

[Red-Pilled_Steel]

A local town raised taxes for no reason whatsoever. Residents complained and asked why, the town's response was basically because they can. This is why property tax should not exist.

[Anonyme]

People please understand when you buy a house, your new taxes will be based on the purchase price so get ready for an mortgage increase.

[nitalove]

Before you buy a home always check with the accessor’s office for tax information. Taxes are based off the current owner evaluations which tend to be a lot cheaper. Once you buy the home they will go back and compare it to the current market value.

[jessedavis]

It’s not just property taxes the insurance through escrow is adding hundreds to the monthly mortgage payments over night. All across America.

[Dorothyredshz]

Estimate how much your property taxes and insurance will increase...pay extra to your escrow .. then you will be prepared ... sometimes just paying an extra 50 to 100 dollars to a month will fill in the gap when taxes and home insurance is due ....just not eating one time a month will save you a headache !!!

[lauraboudreaux]

Taxes are a rip off also. Why do we need to keep paying taxes once paid off. They can overvalue the home, knowing damn well it will not sell for that. Insurance is also ascam.

[phobedavis]

Great video. I own my home outright. I am still preparing for the sticker shock of taxes and insurance. The taxes went up $600 and insurance $200. My raise as a teacher was $1200. So I ended up keeping $600 in my pocket.

[kristendaniels]

We have lived in our condo for about 11 years now. We pay $100 over the cost of the mortgage payment every month so we have never noticed a difference. That is until last year. A special assessment was done apparently because the schools wanted something done, but I know it wasn’t an expansion. Because if it was, I have yet to see anything happen. That whatever it was that they needed raised our taxes significantly. So that hundred dollars extra That we were putting in was no longer enough. So instead of paying $900 every month… We are now paying $1100 every month. Like they say… It takes a school system to bankrupt a village.

[nbrown]

Apply for Homestead exemption immediately after closing if you state offers it. It Cave you a few hundred off your tax bill annually.

[gordonmccracken]

The fact that taxes can go up is no secret.

[seemoore]

Check for other money sucking programs that your state implements too! I purchased my house in MD and did not know about a Front Foot Benefit that is added to your tax bill to pay for the sewer and water being connected to the pipes from the city. The payments are broken down to pay over 20 - 30 years. It has added $1600 a year to my property tax bill on top of the amount due for property taxes. My house was purchased in 2007.

[Ginaloveslivinglife]

Everybody want to be paid…. But no one takes accountability. They gaslight and blame everybody else. This girl is telling the truth is young lady is.

[nnjczfl]

"...we also as consumers have to take some accountability." Well said! With all of the information that is available, how can someone not know a lot of this information? New construction homes I can understand because property taxes are based on the value of the land (unimproved value).

If I am not mistaken, lenders are required to provide borrowers with a Closing Disclosure. There is a section titled "Estimated Taxes, Insurance, and Assessments". It says that "Amount can increase over time. See page 4 for details." Either she didn't read it, didn't understand it, and/or did not know the questions to ask.

If she knew someone that has a home, she could have asked that person questions about home ownership.

[revilsdr]

It's not an agent or lender's responsibility to teach you about finances. There is a wealth of information online about how mortgages and property taxes work. No bank it's gonna hold your hand and tell you whether or not you're making a good financial decision when you buy a house. That is 💯 on you.