Why is my mortgage payment going up? The value of my house dropped but the taxes went up. Why?
Ok what I'm trying to figure out is why when the value of my home dropped $6,000 my taxes went up just about $100. I have only owned the house since the middle of August 2009. In the statement I received, it says something about an escrow shortage and projected/allowable low point. What does all this mean? What can i do about this? and is there a way to get my taxes back down to where they should be? Or lower for that matter? I bought the house for $90k when it had an assessed value of $120k and appraised value of $100k. Now it was assessed at $114k What are my options? And if you need more info of if I am missing details you need to help answer properly put that in your answer and I will update. Thanks for your help.
I live in Racine, WI for those who were wondering. As far as timing they just sent me the notice within the last 30 days. Maybe less than that. It takes affect June 1st. If I do have a chance to try to fix it, how would I go about doing this? Please be as specific as possible since I am still fairly new to all this. Again thanks for all the help.
- Grandpa SharkLv 61 decade agoFavourite answer
Sounds to me they figured out your tax wrong when you purchased your home. It took about 2 years before they got mine right.
- Michelle CLv 41 decade ago
OK 1st the escrow shortage and projected/allowable low point - there is nothing you can do about that. What it means is the mortgage lender (whoever you make your payments to) requires you to keep a certain amount of $ in your escrow account and you are below that amount so it needs to be made up. If the assessed vakue has gone down, which you say it has from $120k to $114k than most likely your taxes went up because your towns mill rate went up - NOTHING you can do about that happens every year alomost, get used to it. Your property taxes will continue to rise.Source(s): Homeowner, landlord and CT Realtor
- realtor.sailorLv 71 decade ago
You can challenge the tax assessed value. Check with your tax assesssors office, but it's probably too late for this year. County assessments are usually as of January 1st of each year and you only have a short period to challenge.
realtor.sailorSource(s): I'm a Realtor
- HEATHERLv 61 decade ago
Depends on where you live. I am in Cook County, IL and they based the most recent round of reassessments on 2006 prices. So my assessment went up even though my housing value is down. You can appeal in most counties but a lot of them have limited time frames for you to do so. And proving your assessment is higher than the value may not do a thing for you. In my county you have to approve that your assessment is high relative to similar homes in your township. In other words, if the government is screwing you and your neighbors equally, you won't have much chance of getting it changed.
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- Anonymous1 decade ago
funny, just last month i resolved this situation....
i noticed that they had valued my house at 556k....that is up vs 460k three years ago...
I explained to them that the actual value of my house is presently 471k......
there adjusted everything and i ended up saving on taxes as well as home owners insurance...
total savings was 167 per month.....
your home owners ins will be impacted most by fixing the actual val or your house...