Here’s Why Your Payment INCREASES AFTER You Buy A House

[@KasandraWilliams]

My number one take-away from this is to stay away from HOA and new construction homes.

[@WinTheHouseYouLove]

HOA's are often garbage. New construction is fine, but you'll want to confirm that the tax estimate is realistic

[@wesleyweber8488]

I don’t mind new from a reputable builder, matter of fact, after two “needs a little work” houses, I would prefer new. HOA, that’s another story. I’d take a free home where there is a HOA, and it would be on the market that same day. I’ll be damned if I will pay someone to tell me what I can and cannot do in or to my own home. I understand the need for one in certain situations, just not for me.

[@BrewReview]

The issue for many is that it's sort of tough these days to find homes they really love that aren't in HOA controlled communities. You kind of have to go out into the boonies to start to see those mystical properties most times.

[@diegolara4202]

I live 35 mins from Dallas and my payment has actually come down due to property tax rate cuts and me finding lower home owners insurance. It started at $1748 and is now at $1682. This includes the loan, property taxes, PMI, insurance etc.

[@WinTheHouseYouLove]

Ooh that's awesome!

[@alejandrinoflores8793]

Hey Diego, what company do you use if you don’t mind me asking. I live in Dallas as well and I’m looking to get homeowners insurance on a recently purchased home. Thank you in advance!

[@diegolara4202]

@@alejandrinoflores8793 I have Farmers. My 1856 square foot home is covered at $1200 for the year. My previous insurance was going up to about $1600. Who knows what Farmers will come back with this year but I'll shop around again. I'm not loyal to any insurance company. I do the same with auto insurance.

[@kariemmcfarlin5897]

Try Costco insurance and also mercury had a very good prices for DFW

[@diegolara4202]

@TheR3alRyan yes east of Dallas.

[@Lyss885]

My mortgage went up from 4700/mo to 5700/mo in two years. All from property taxes. I had no idea the reassessed value changes to the sale price after you buy. But no one owns a home in my family so I have learned everything firsthand.

[@onode797]

What do you mean by “The reassess value changes to the sale price”. Can you please explain? Thanks

[@Lyss885]

@@onode797 the county assessor comes out and determines the value of your home. Based on the value that they came up with “the assessed” value is how you are taxed. Whenever they reassess your home value, it’s the “reassessed or new assessed value”.

[@ShaeJ_Shae]

@@onode797 happens a lot w/ new builds. First year estimated tax is only on the land. So dirt and rocks. Next year, the new assessment will include that new house And land that has also built more value. Now the reassessed value results in either a shortage in escrow or pay it all at once which is more than likely 10’s of thousands.

[@smellybut33]

Did you have a new build?

[@retrogamer9999]

Real Estate agent or mortgage agent didn't tell you? They just out for their commission. My property tax went up 6k over 15 years.

[@Think_harder_please]

Totally unrelated, but your voice is so soothing!

[@mamatosh05]

Yes, his voice is soothing. I clicked on this already knowing this information & was ready to click out, but his soothing voice kept me. Also, I like hearing how other people break down why your mortgage changes over the years. He explained it so well.

[@NYCAppl3]

Yes, he has a beautiful voice (great for late night easy listening radio or voiceovers) 👍🏾

[@WinTheHouseYouLove]

Thank you :)

[@TheKlh54]

Totally agree. It’s goes a long way when you modulate your voice!!

[@postalpancho]

I can confirm the very first text from his friend. Financed my home 8 years ago. Start at $1580, and over the years it has increased more and more. Now my home is $1870/month. For me to buy my exact same house now would be $2500-$2600/ month. I’m still in a good position and have over $120k in equity but there’s no point in selling because I’d just be having to buy another over priced house. For those waiting on the sidelines, the sooner you buy the better off you will be in the future. It takes time but eventually you will save a lot of money.

[@Steven_Star]

don't agree with your last statement that the sooner you buy the better off you will be. Now is the time to sell, if you want to sell. its a seller's market (varies some depending on locality), but it is quickly becoming neutral with more houses flooding the market. eventually we will hit a buyers market, and that is the time to buy. in roughly 6 to 18 months, there is at least a 40% chance for a recession. its not guaranteed, but its within the realm of what is possible. renting might be the cheaper option still. some people are choosing to live the van-life.

[@kodirodriguez7776]

it pays to wait.... in 2013 bought a short sell for 40k cash, now it's worth 300k, I'm doing the same now, I'm waiting, we won't see the real effects of this economy in the real estate market until 2-3 years from now

[@WinTheHouseYouLove]

That's frustrating for sure!

[@LisaJones-lg8lu]

@postalpancho that's true my husband and I was go buy a brick small 3bed home 2bath hardly no back yard and at the end the numbers went from 1400 to almost 3 thousand a month. We change our mind. I'm not paying 3 thousand for 30 years. Too much cause the monthly payments will increase every year. Not getting in that debt like that🤔🤔

[@modernsoccer1860]

I also disagree, you can wait patiently, put that mortgage payment into an etf like qqq which has returned on average 18% over the last decade, once you have about 700k ish, dividends + growth can help pay for a house in like 3 yrs so you don't have to be paying mortgage forever

[@daphyneshine3222]

I remember when my mortgage in 2009 was $675. Now 15 years later my mortgage is $1068. State of Georgia. It’s still not bad.

[@NYCAppl3]

🙌🏾

[@WinTheHouseYouLove]

Thanks for sharing!

[@LisaJones-lg8lu]

@daphyneshine3222 that's good but 15 years layer and the mortgage not paid off🤔 must be for 30 year mortgage

[@iati6294]

@@daphyneshine3222 house still not paid off after 15 years ? 2009 was rock bottom for house prices! Why ?

[@daphyneshine3222]

@@iati6294 Didn’t get a 15 year loan. On a 30 year. Also house is being rented out. No rush to pay it off. My tenants do that for me.

[@Itzryan288]

Hallandale Beach, FL Duplex Bought in 2022 with FHA loan 2022 $4,000/mo 2023 $4,200/mo 2024 $4,800/mo It was a surprise to say the least.

[@ERoss338]

Mine jumped from 3400 -4250 mo

[@WinTheHouseYouLove]

Oof that's rough!

[@kelj4517]

@Itzryan288 I’m a disabled veteran and I live in the FL panhandle. I don’t pay property tax and my interest rate with my VA home loan is 3.5% My monthly mortgage payment with my homeowners insurance is $650 a month.

[@darrell_dee97]

Don't forget to file for your "Homestead Exemption" if your county has it. I'd also add that in some states and by county, if your property taxes include school taxes you can file for exemption when you turn 65. Where I live just outside metro Atlanta, the school taxes are half of the property tax bill. The savings would be significant once you've reached this milestone.

[@WinTheHouseYouLove]

Great addition :)

[@articrecon]

@@darrell_dee97 100% disabled veterans have tax relief policies, not a freeze, that vary from state to state.

[@darrell_dee97]

@@articrecon Good to know 100% disabled veterans have relief.

[@parkourguyyy]

glad I only have to wait 30 years!

[@carlos9099]

Excellent video. Every person who is considering buying a house should watch this video because no realtor explained this to you, like this...

[@Heavyperro]

In AZ, the tax roll is two years behind. If you buy a new build, the taxes that are calculated are based on the value of the property two years before. This means that during the first two years your taxes will be super low and on year three you will begin paying taxes based on your homes value. Unfortunately, as an added bonus you will also have to deal with your mortgage company taking additional money out because you’ll be short and they will calculate for additional taxes the following years. My mortgage in 2021 was $1,400. In 2023 it went up to $1,700.

[@WinTheHouseYouLove]

Bummer!

[@pennymarmar]

So much info 🤯🤯 it's like penalty for owning property

[@WinTheHouseYouLove]

It's definitely frustrating

[@patrickbledsoe2176]

they don't want you to own anything ( unc sam)

[@vjb488]

Insurance rates are unbelievable and the companies are combining or becoming affiliates making less competitors . Your mortgage company requires the insurance but find out ifthey require replacement insurance because the prices are super high! and there may be other options.

[@alittlerayofsunshinee]

This video was extremely informative and easy to understand. Thanks for explaining cause this is all so very new to me!

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@laceycochran5244]

I had house reappraised contacted mortgage lender removed PMI, and escrow. I now put aside my own money monthly and make 1 time a year payments for property tax and 1 time a year insurance payment. THEY NO LONGER CONTROL MY PAYMENTS. I essentially pay same monthly payment and control my escrow. ❤ I'll never have escrow again!!

[@WinTheHouseYouLove]

Awesome!

[@InvestWithFFI]

I plan to do this as well.

[@Sewcrates]

I've been self-managing my escrow for about 8 years. I will never go back.

[@jddj8943]

I left apartment life thinking buying a house would be better, to find out my mortgage keeps increasing higher then my apartment use to, rent only went up $50 a year and all maintenance was covered, while my property Tax keeps increasing, HOA doubled since I bought my house, property insurance insurance skyrocketed because I'm Florida worst state to buy a house. Then they tell you at least you're not throwing money away by putting money on something you own, yeah right most of the mortgage is interest, buying a house has gone from the great American dream to the great American scam

[@crzytasha]

@@jddj8943 Agreed. From the great American dream to the biggest American scheme.

[@oscarcaballero9014]

That's what has do they only go up never down

[@oscarcaballero9014]

That's what hoas do they only go up never down

[@Zahra_95-Abd]

Bought in 2021 2021 1,527.72 2022 1,561.27 2023 1,547.79 2024 1,854.02 I have a shortage of about 2.5k. In 2022 the property tax went up to 4.7k. I called the city and they explained the reason for the increase and they recommended to file a special property tax refund. I got some of my money back. This year (2024) the increase is driven by my home insurance which went up by 1k. I called my insurance agent to either look for a new insurance with less premium or lower my current dues. Thankfully, I had my roof replaced in 2023 by the insurance and they gave me a discount of 1k for that reason. Insurance companies are technically trying to protect their nest since our weather is WILD in MN. 😅 The lesson here is: Ask around why you got the increase!!!

[@WinTheHouseYouLove]

Thanks for sharing!

[@solologging2488]

Main takeaway is don’t take the maximum amount you qualify for! YOU WILL EVENTUALLY BECOME HOUSE BROKE!

[@RonalMorillas]

Can you explain how come? For time home buyer, still looking

[@ChiChick312]

As a newbie, can you explain why someone would take out more than what they need? What do they do with the extra?

[@solologging2488]

@@ChiChick312 what i was referring too is when the bank tells what your approved for is not necessarily what you can afford…some will approve up to 55% of your income! That coupled with increasing taxes and insurance would land you into the poor house

[@solologging2488]

@@RonalMorillas if you take the maximum loan amount and it’s @55% of your salary you will literally end up working just to pay your mortgage! If property tax and homeowners insurance increases it can lead to you choosing between groceries or mortgage 😞

[@vjb488]

Very good advice!

[@baileyjohn5010]

Yup mine went up by $1K lol… my insurance went up by $2K and then I had an escrow shortage. My lender then told me.. ohh even though your escrow short only by $2K, each month your monthly payment is now $1k more because we have to include a “cushion” in each month … lol makes no sense. I’m trying to get a lower quote

[@WinTheHouseYouLove]

Thanks for watching!

[@mamatosh05]

You explained that well. They should explain this during the process of signing your closing papers or your approval. I learned this after my payments changed. Thanks for explaining it so well.

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@johnmackey3937]

@mamatosh05 This should be explained to buyers by lender early in the process so buyers know not to be surprised.

[@rhino6634]

Why should the lender explain this to you. They have nothing to do with property taxes, HOA fees, or insurance. They purely act in an administrative capacity. In fact you can get an escrow waiver and pay the town and your insurer directly.

[@lm12cm]

Wow! I’m listening through my airpods and your video’s sound quality is the best! I was able to multitask and still listen well to your video!

[@WinTheHouseYouLove]

Thanks!

[@volvo8938]

Thank you for sharing this, people are completely misinformed on this topic and think they have fixed housing costs for 30 years

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@kingofsalty9224]

I purchased my home in 2023, and in 2024, my mortgage payments increased by $85. I believe this is due to an underestimation of property taxes. I haven't had the time to investigate the details yet. However, I was able to protest and lower my taxes for this year to match the value I paid for the home, instead of being taxed $20k more than the purchase price. I need to allocate some time to review the specific numbers, but I'm wondering if this protest can reduce my payments next year, considering I didn't have the chance to protest the taxes last year. Additionally, I'm curious if refinancing in the future could be a viable option to lower payments later on.

[@WinTheHouseYouLove]

At the end of each year you should get an escrow analysis detailing what changed that can help you figure that out :) And yes, refinancing into a lower rate can help reduce your monthly payment

[@ebonyqueen86]

@WinTheHouseYouLove does refinancing cause your loan to “start over?” Let’s say I’ve paid half of the loan do I need to start with a new 30 year loan?

[@WinTheHouseYouLove]

You can always get a shorter amortization time when you refinance (e.g. 25 years instead of 30)

[@bonafidesagG88]

My mortgage increased from $1429 to $1776 within the first 5 months of me closing. I'm a disabled vet so I don't pay taxes and I've been trying to figure out what happened

[@WinTheHouseYouLove]

Oh no! Definitely contact your mortgage company to see what's going on

[@bonafidesagG88]

@@WinTheHouseYouLove I definitely will. Thanks.

[@MrDee001]

Great info. I wished this had been explained to me years ago as a first-time homebuyer.

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@tdvh2181]

Thankfully, California has Prop 13. Your property tax is based on the purchase, regardless of market value. it CAN go up, but no more than 2% of the tax that you are paying that's based on the purchase price. So if you bought your property at $600K, your property tax is set at 6K for perpetuity and can only go up at the max of 2% of the 6K. This tax rate can even transfer to your children if they inherit the house and have it as their primary residence. My coworker inherited her childhood home that her parents purchased in the 80s for 200K. The house is worth over a million now but her property tax is still based on the original purchase price of 200K that her parents were paying. There's some caveats, like if you refi then the tax goes up to assessed value at that time and stays there until you refinance again, but that's Prop 13 in a nut shell.

[@WinTheHouseYouLove]

Thanks for the addition here!

[@InvestWithFFI]

Did not know that. That’s really great.

[@Playingwithproxies]

Great sounds like the only positive thing in California at least for home ownership

[@tdvh2181]

@@Playingwithproxies Also: - The amazing weather and diversity in terrain: beach, mountains, forest, desert all close bye. - Employee protection. - 12-weeks parental leave (paid at 60% of your salary. You can use vacation time to offset the difference so you get a full check if you need it. I took 7 weeks myself). - Diversity in cuisine. - Pretty good veterans benefits. The Cal Vet program lets children of disabled veterans with a service connection rating of 0% and over go to any state college or university (UC or Cal State) for free. They will only pay for books and parking. Spouses get the same as well. Now, CA has MANY flaws, but as a homeowner, a father, and disabled vet, who is fortunate enough to live in a safe superb with excellent public schools, I'm staying as long as I can and making the most of the benefits of living in CA. It's a pay-to-play state.

[@LegendaryJTV]

Is it possible to manage your own escrow account?

[@misterogers9423]

The opposite thing might happen when the taxes go down if certain markets crash or if you protest your taxes.

[@Steven_Star]

its a good idea to double check what metrics they are using to assess your taxes. protesting them is certainly an option, seems they just don't get alot of protests and want to raise 5% or more too much. then they use the wrong starting point. my friend said he had to protest and explain why what they were doing wrong for 5 years straight. each year, same thing. and he would of kept proesting every year. most people don't protest, and that is what they are counting on. make sure you aren't being cheated.

[@WinTheHouseYouLove]

Possible

[@guevarasamson1165]

This our second year of first time home ownership on a new construction and each year our house payment has been lowered because our lender over estimates our taxes. So each year so far we've received a surplus check from our escrow account! so I'm glad they qualified us from the get go by OVER estimating taxes.

[@WinTheHouseYouLove]

Great!

[@lindaadams1008]

I recently saw some over priced cookie cutter homes selling for four and five hundred thousand dollars...😳

[@WinTheHouseYouLove]

Whew!

[@user-ym6dl8tq6u]

Best real estate channel on KZbin!

[@WinTheHouseYouLove]

Thank you!

[@makeibalove2081]

Kyle i was lucky thank God. I bought in 2023 in 2024 it only went up by $5. Unbelievable i hope it stays low.

[@WinTheHouseYouLove]

Glad to hear!!

[@bos-lifetrucker9868]

Bigg up thanks for what you do keep it real with the mass education is important when you're purchasing a big price tag...

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@keywestalert6329]

Bigh up ya self. Mortgage prices explode. Ya hear?

[@Laroc1982]

Can you offer an explanation as to why we were told for years this exact thing? That one of the benefits of home ownership was a fixed monthly payment in terms of the mortgage payment? Why people who have owned their homes since the 80s, 90s, and 00s brag about their mortgage only being $700 or $800 a month? Why the sudden change? And if the mortgage payment can change, how does that make it any different from an adjustable rate mortgage?

[@WinTheHouseYouLove]

Fixed payments have always been like this. Your principal and interest stay the same if it's a fixed loan. Your mortgage company doesn't control property tax or homeowner's insurance.

[@gingerkilkus]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@Whoareyoucalling]

Everyone: Complaining about their increasing mortgage... Me: wondering why nobody got a fixed rate mortgage...

[@WinTheHouseYouLove]

Many people don't realize that even with a fixed-rate mortgage, their taxes and insurance can increase over time. Thanks for watching!

[@bencortez9907]

I gained 80K in equity since my purchase in late 2021. Makes sense that my property taxes have also gone up but luckily with homestead exception it’s reasonable. My HOA and homeowners insurance have also gone up. All that being said I’m still super happy with family in our home. To rent same property would be an additional $700 per month.

[@KirklandRed100s]

Mine has increased 347 dollars in two years.

[@voip4life]

6 years ago started at $1331 a month, today it’s down to $1301. PMI dropped off somewhere around the 3 year mark. Guess it’s where you live and how extravagant your home is.

[@WinTheHouseYouLove]

Great!

[@meitch710]

I always see new buyers maxing themselves out not knowing their taxes are gonna double based on what they bought it for

[@WinTheHouseYouLove]

Maxing out is never a good idea

[@Rushpatil]

I live in California and my mortgage payment has been actually decreased by $400 in one year

[@zdwade]

Well said and explained. Do not shop insurance every year. Insurance companies will charge more when you shop all the time. Plus that new policy comes with new inspections that could prompt 1000s in repairs out of pocket

[@WinTheHouseYouLove]

I've never heard of either of those things happening and can't find anything online that points to that being true. Can you provide a source to back this up?

[@82dupont]

That usually happens when you shop independently of an agent. I use an agent and he gets me the best policy for my home and no inspection. I have been with same insurance company for years now. The most important part of it is to read your insurance police carefully.

[@viltheegr8334]

Same thing happened to me what you have to remember is when they do the assessment in regards to a new build you’re literally just paying taxes on the lot your home will be built on. After your home is built that’s where they get you

[@WinTheHouseYouLove]

Yep! Lenders are supposed to estimate property taxes based on the home's value, but that doesn't always happen

[@dinar471]

A lot of people don’t know their payments will increase, and it’s especially sad when people buy on the higher end of their budget, and then get a shock a year or two later.

[@WinTheHouseYouLove]

For sure

[@kenjordan5750]

My Homeowners insurance was not in my house payment. I bundled it with my car and life insurance, and got a discount. Never had an HOA until I retired to a 55+ community. HOAs suck.

[@WinTheHouseYouLove]

Thanks for watching!

[@brnjones9]

Just want to say I am so happy I was able to use my VA. Thankfully it's Principal, I terest and taxes. Started at $1250 in 2021. I was purposely adding $100 extra each month. Last year 2023 it went up to $1350 due to taxes. Fine I was already used to paying that anyway. This year when I got the escrow letter it begins by saying, "your payment has increased and here is why." Normal, But it actually went down $60. Once I read the actual printed part for me and the half letter of generic words including your payment went up, I called to confirm. My insurance has been pretty stagnant,only minor increase I can't even remember But renting would've been min $2000 a month before utilities (not in a great neighborhood either). So glad I made the decision and could afford to buy just before the interest rate took a hike up. Definitely don't max out or get an ARM unless you got super long money

[@WinTheHouseYouLove]

Thanks for watching!

[@JuliaZabkar]

Another example of something incredibly important to be at least aware of, that nobody is taught in school. I am nowhere near purchasing a home, but I just happened to become aware of escrow through KZbin at 25.

[@marcedwards7110]

That PMI is a great thing. I mean, what better way to make sure i make my payments than to INCREASE my monthly payment another $200-$300? And damn, if your credit is bad? You’re talking maybe $500-$600

[@tesoro2250]

PMI is solely for the bank. It only benefits them. Remember the golden rule. He who has the gold makes the rules, and the borrower is slave to the lender.

[@WinTheHouseYouLove]

I understand your frustration

[@knottheory79220]

It makes sense. It sort of kills the idea that mortgages are fixed expenses that never go up like rent does.

[@rhino6634]

Mortgages are fixed expenses. Property taxes and insurance have nothing to do with the lender. It’s the township and the insurer.

[@hevinamber]

Very nicely explained. Would have been nice for you to clarify to those who may not know, the more you make principal only payments, the lower your overall principal balance will be which means more of the regular monthly payment will go towards principal so the principal that is taken out of a regular payment does fluctuate based on the overall balance of the mortgage ❤

[@WinTheHouseYouLove]

Good point! I can see how the way I explained it was confusing. The total of Principal and Interest are fixed. But independently they change over time.

[@hevinamber]

@@WinTheHouseYouLove Yep 🙂

[@ForeignboyAK]

The more I learn about mortgages the more it’s looking like big scam

[@WinTheHouseYouLove]

I can understand your frustration

[@spooksyschannel3038]

You’re smart too. You see the scam also.

[@rhino6634]

The whole premise of this video has absolutely nothing to do with your mortgage lender. It’s going up because your local govt is raising taxes and insurance premiums increasing. You have the option of paying your local govt and insurer directly. You are right the govt is a scam

[@ReanuKeaves1]

My mortgage went up by $400 after my first year of living here on top of $600 escrow shortage being divided into 12 months. So $450 total. My mortgage is currently $4350 and I’m living paycheck to paycheck as it is.

[@WinTheHouseYouLove]

What caused the $400/mo increase?

[@ReanuKeaves1]

@@WinTheHouseYouLove My property taxes (Southern California).

[@WinTheHouseYouLove]

Ahhh gotcha. That really sucks, I'm sorry to hear that!

[@ReanuKeaves1]

@@WinTheHouseYouLove No worries. I’m very good at saving and budgeting. I’m able to save $600-$1200 a month so when the time is right, I can refinance and pay a lump sum. I’m attempting to pay $15k/year to pay off my home in 15 years.

[@biancacalabria]

This should be required viewing for any new homeowner

[@CHRIS-tg5cn]

Well your “mortgage payment” is principal + interest. Taxes and insurance aren’t part of that technically (they aren’t factored in to your loan, aka mortgage). People are too stupid and ignorant to separate the 2.

[@jaimebaca9439]

Do people not ever read their escrow statements? That’s the government increasing taxes. Local elections matter people.

[@WinTheHouseYouLove]

Usually no

[@boroqcat]

As a homeowner of 10 years, housepoor for at least 8 of the 10, I can confirm. Sending this as a PSA to all my younger relatives getting up to home buying age.

[@WinTheHouseYouLove]

Thanks for the addition!

[@teribunker5223]

Escrow shortage EVERY year!HOA too!🤬

[@WinTheHouseYouLove]

Oh no!

[@greenfly0917]

Was just having this conversation with a friend. She said she calls up her mortgage company and throws a couple hundred in her escrow account either in those months when it's a 3 pay check month or when she gets her tax return to avoid the higher mortgage due to escrow shortage.

[@82dupont]

@@greenfly0917…This is how I was taught to manage it when I had to deal with escrow, I put a little extra towards escrow and avoid the shortage.

[@cheesemaster113]

You live there, go out and vote. Keep taxes low!

[@fridder.]

It was explained to me like that's not a great idea. The problem is it's usually school funding (at least where I am in NY), and that decreased funding means decreased home values, so you're shooting yourself in the foot on that. The taxes here are insane - $15k for a $450k house, and trust me, there aren't many $450k houses.

[@WinTheHouseYouLove]

Thanks for watching!

[@masoncnc]

I started at $2100 in 2003, now it's 2600. (Cash out refi😁)

[@WinTheHouseYouLove]

Thanks for sharing!

[@venchenzo4493]

Also millage rates go up as well as assessed value, its why you see 20 to 25 percent increases in taxes. Absolutely disgusting.

[@WinTheHouseYouLove]

Super frustrating

[@ashuhegde]

It is mandatory to have an escrow account?

[@WinTheHouseYouLove]

Conventional - usually required unless you have 20% down FHA - yes USDA - yes VA - no

[@gzsprout]

I do understand that some of the fees change and impact your mortgage (usually annually), what I'm always amazed by is that I don't think I've ever hit a year where they didn't under-collect / underestimate escrow, so it has to go up to match the difference + the shortage. Universally, across 12 properties, it's never close.

[@WinTheHouseYouLove]

It's likely your tax/insurance bill is increasing, so they're collecting what they expect your bill to be based on the only data available (the bills they receive). They don't know what it will do in the future. The alternative is the mortgage company collecting more from you based on a forecast... if banks did that people would be mad that they're collecting taxes/insurance based on their forecast. People would call it a scam.

[@Juggernautdeath2]

My mortgage has gone down since buying my home 3 years ago because I shop for a new home/auto insurance bundle every year instead of just auto renewing. Saved myself hundreds this way. Also planned ahead and bought a home with low property tax rates which equates to only about $1000/year, and got a fixed 30 year loan 3.375%

[@WinTheHouseYouLove]

That's awesome! Smart moves like shopping insurance and choosing low property tax rates can really make a difference in keeping overall costs down.

[@amyx231]

But insurance and taxes aren’t mortgage! They’re separate things. Just because some people bundle them doesn’t mean the mortgage rises.

[@WinTheHouseYouLove]

You’re right, insurance and taxes are separate from the actual mortgage. However, if they’re bundled with your payment, rising costs can make your total monthly payment go up. Thanks for watching!

[@contextual_investor6139]

It happens, I bought my house in 2022 with a payment of $3,400. Now in 2024 after new tax assessments we pay $4,200 a month. Almost a $1k difference in just 2 years. Wild.

[@j.j.lanblaster42390]

Yeah, I just went through a new build back in 2021. So, I bought 4 acres of farmland that was zoned "agricultural" in July of 2020. The taxes on each 2 acre lot was $200 a year agricultural. The construction company started building on one of my 2 acre lots in March of 2021. Also, the start of that year my taxes went from $400 a year to $800 a year for both 2 acre lots because I wasn't able to keep it agricultural but at the same time the house wasn't built yet. Fast forward to the start of 2023 when the new house was built and we were living in it. Taxes went to $4,200 a year. I had anticipated paying around $4,500 a year after talking to several friends around my area that had a house valued around what my house would be valued at. Start of 2024 with two tax levies that passed in 2023, I am now paying around $4,700 a year in taxes. I personally wasn't blind sided by any of this because this is the second home I have owned but this is something for a new homeowner to think about. You're payment will most likely always go up! Originally, I was paying around $1,000 a year for home owners insurance and now I'm paying around $1,600. In less than 3 years, I am paying $600 more to ensure my home. Anyway, just something to think about when buying a house and making sure it's right for your budget.

[@edmund2j]

Always remember - property tax is whatever the assessor and appraiser deem your house to be worth every year. And you will always lose because it's a source of revenue for them - for the rest of your life or until you sell it to the next victim. In short - it's a cash cow for the state CAD.

[@WinTheHouseYouLove]

It can definitely feel frustrating knowing that property taxes can increase over time and impact your mortgage payment. Thanks for sharing your thoughts and for watching.

[@maddashforroadtripcash3477]

So... you have to have $60, $80,or $100k in cash to cover your down payment and emergency fund??

[@WinTheHouseYouLove]

Depends on how you structure it and what the home price is. Most of our buyers are buying with much much less.

[@rhino6634]

Dumb video mortgage payment implies principal and interest. The lender has nothing to do with property taxes and insurance. They are nice and act as an administrative agent. I pay for my insurance outside my mortgage payment.

[@WinTheHouseYouLove]

I understand your frustration. Many lenders include property taxes and insurance in your monthly mortgage payment through an escrow account, which can change and increase your total payment over time.

[@sewtritionistrdn1956]

Good structured info of any online realtor. What I've always wanted to know though, what is the monthly average payment if the person is blessed to have the money to purchase outright/pay the full amount (initial taxes, fees, etc) at closing and doesn't need a mortgage? Would they really only have say property taxes, house insurance, utilities, maintenance/upkeep, etc., to deal with? Could you do a video on this.

[@Jcislrd7]

I am so glad i found this before purchasing a home. Im doing all the research i can before i take further steps. Thank you so much for taking out the time to teach us things no one else is! You'd think this would be something we would learn in school but we dont 😞

[@kevinbatts2804]

My home value has went up exponentially according to the county. It went up even more then what homes sell for in my neighborhood.

[@WinTheHouseYouLove]

That’s really annoying! Look into ways you can challenge the value with the county. Thanks for watching!

[@celieboo]

One of my colleagues refuses to use an escrow. She makes her own insurance and property tax payments. Since she does this, her mortgage payment has never cusnged.

[@WinTheHouseYouLove]

It's great that your colleague manages her own insurance and property tax payments! Choosing to handle those separately will definitely keep the mortgage payment itself consistent. Thanks for watching!

[@sasuke082594]

Nice my rent increases 10% every time my lease is renewed… pretty soon I’ll be 2,500 for a 2bd apartment… must be nice to own a home

[@WinTheHouseYouLove]

I totally get it. Feel free to reach out to us if you’d like help with a pre-qualification.

[@bayodaman]

Shit, I got a check back from my mortgage lender. 😂😂 they over charge on escrow to make sure lol. Was my first year though so I guess will see.

[@WinTheHouseYouLove]

Happy to hear you got some money back! They often overestimate escrow in the first year to cover potential changes in taxes and insurance, so it sounds like your experience was pretty normal.

[@johnmackey3937]

All buyers need this early in the process when approved, some people don't need much for financs to go bad.

[@nobodynothing00000]

Doesn't it work the same way in most states, if your home value goes up, the property tax value goes up as well?

[@brownsugar2u]

Thank you for always making the most thorough videos. Great job!

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@dariahutchinson2262]

Great video!! Thank you so much! Finally a true teacher!

[@WinTheHouseYouLove]

Glad it was helpful!

[@pappadudat]

Mines only went up 76 bucks. Bought my house in 2017

[@ellygoodoverevil4064]

Buying a house from start to finish It’s all a scam, and for as long as you own it.

[@user-zb7tg5hi3t]

Mine went from $2600/month to $3000/month in 4 years.

[@chasemer6]

This video could also be titled “Why I became a conservative”.

[@WinTheHouseYouLove]

It's frustrating when unexpected costs come up after buying a house. Thanks for watching and sharing your thoughts!

[@JebSmith]

Great video, Kyle.............

[@WinTheHouseYouLove]

Thanks!

[@SAreamusic1]

So a variable payment on a fixed loan is not right. Taxes, insurance, whatever it’s wrong. Is this Only in America?

[@WinTheHouseYouLove]

The loan is fixed. Taxes and insurance are separate. Taxes and insurance are not part of a loan.

[@Psalms20A21]

Kyle, Thanks for another very helpful and informative video🧠 Will Share!

[@al3220]

I had no idea property taxes and home insurance premiums are considered part of the mortgage payment. We dont usually include those in the same conversation in Canada. Interesting.

[@WinTheHouseYouLove]

You're right, in the U.S. property taxes and home insurance are often included in the monthly mortgage payment through an escrow account. It can make budgeting easier but can also lead to payment changes when those costs go up.

[@al3220]

@@WinTheHouseYouLove it's interesting and I feel this arrangement could be beneficial for some folks.

[@angelscry2323]

It’s true payments will go up while owning a home, but while renting a apartment your rent will also go up after the end of the contract. Even though I’m a home owner now my rent for my apartment at the time went up by 40%. I now pay les for a 3 bed room house then I did for a 1 bedroom apartment.

[@WinTheHouseYouLove]

You're absolutely right! Owning a home can sometimes be more cost-effective in the long run compared to renting. Thank you for sharing your experience!

[@keywestalert6329]

$1500 in 10/220, now $1700. Will move out and down size. For no reason other than we can't afford this house and we NEED equity to buy the next place so, make that a tiny home place. Just a box inside of a Chalked circle.

[@WinTheHouseYouLove]

That's frustrating

[@kevinbatts2804]

I had no idea this was a thing. I must have missed it during the process. It has been headace watching it go up every year by hundreds of dollars.

[@kevinbatts2804]

We feel like we're slowly being priced out of our home due to taxes.

[@WinTheHouseYouLove]

Your frustration is totally understandable, Kevin. Thanks for watching and sharing your experience.

[@-bu6kzL]

Do not bundle your mortgage with insurance and property tax through escrow. It is a waste of money, unpredictable, and negatively impacts your stats when applying for credit later. Just save on the side, earn interest, and pay the 3 bills separately.

[@WinTheHouseYouLove]

Thanks for watching

[@Ultrarooster33]

Might be obvious, but I think a technical clarification: The principle and interest payments would be fixed in total, but the split between what gets allocated between principle vs interest will shift (with more allocated to interest earlier).

[@WinTheHouseYouLove]

Good clarification! When making the slides I should have just put one lock symbol. Two symbols made it confusing.

[@Laroc1982]

12:08 Don’t you see how this quickly becomes unsustainable, and how we are all being scammed? Both owners and renters? This is absurd.

[@WinTheHouseYouLove]

I can understand your frustration

[@jaedin716sw]

Basically your gonna get played either way.

[@WinTheHouseYouLove]

🤔

[@Sewcrates]

Self-managed escrow is the only way. I've been doing it for 8 years and I will never go back. If the mortgage lender won't allow it, no deal.

[@WinTheHouseYouLove]

Nice!

[@celularphone]

You got the tax wrong. Your tax goes up from poloticians raising taxes. If the mill rate stayed the same it is unlikely the property tax would go up.

[@WinTheHouseYouLove]

Property taxes are the millage rate x assessed value

[@krisswolf2011]

When they reevaluated my escrow after a year, they actually reduced my payment and gave me a fat refund. I threw that money right back into the principal

[@rhino6634]

Do you want a cookie

[@steveweixel6709]

I figured from just the title it was going to be because of escrow. I realize sometimes people don’t have a choice but I’ve always avoided it.

[@WinTheHouseYouLove]

Good plan

[@PandoraBear357]

Mine went up in 2022 and 2023, because of all the house buying frenzy and people paying over asking price drove property values up, but it went down this year. We're back to our original payment of $938 a month.

[@WinTheHouseYouLove]

Oh great!

[@celularphone]

Your taxes arw based on the value of your home compared to your neighbors. It has 0 to do woth your homes value. Of all the homes go up the same there is no change.

[@WinTheHouseYouLove]

Property taxes use assessed value of the home

[@georgejohnson7637]

If everything keeps going up, then insurance and taxes alone are gonna cost just as much as the full mortgage

[@WinTheHouseYouLove]

Possible, but the increase is usually slow enough that it would take a while for that to happen

[@MichaelHalsell]

@@WinTheHouseYouLove Historically, that’s been true. However, nowadays, consumer costs are fair game. Municipalities typically heavily depend on property taxes to meet most of their revenue needs.

[@melodyanderson7914]

Yes my monthly payment went up after a few years, stayed the same, then went up again for another year or so and then it went down a couple hundred but it’s still higher than when we bought this house 8 years ago.

[@WinTheHouseYouLove]

Thanks for sharing!