Private Mortgage Insurance (PMI) Rates went up?
I just got a bill from my escrow account for shortages in the amount of $ 630. That was quite a change from last year when we got a $ 700 rebate check for overages. I wish they’d just kept it! I called and asked why i owed so much to escrow AND may payment was increasing. They told me it was because the property taxes in my town increased and they didn’t anticipate that. Ok i said i understand and got off the phone. Is it normal for taxes to rise that much? And when i was looking over my statement, i saw (and decoded) the PMI increased by $ 130! from last year! Is that normal? i was looking online and some sites were saying that the PMI should not increase after closing on you house. Was it hidden in fine print somewhere, that they can increase? This is insurance for the bank if we ever defaulted on our loan, but can’t they see that driving up the rates on everything, can make a person default? So much for a “fixed-rate”!