Home » Real Estate

One Positive Result From Plummeting Home Values

11 March 2010 5 Comments

I recently received a notice from my lender that I had overpaid my Escrow account last year and I was due a refund.  Woohoo!  Due to my plunging home values, my property taxes have been decreased.  Even better, my mortgage payment was adjusted to $55 less per month (double woohoo).

These are obviously welcome developments, although I’m not sure how much there is to be excited about in light of the vaporated equity in my home.  Oh well.  I live in Florida, therefore have higher property taxes than many other states, so some of you may not have received similar adjustments even if your situation is similar.  Please leave a comment and let me know your state and if you received an adjustment.

So, I just got a check for a little over a thousand bucks (from overpaying last year) that I can throw into savings (no, I’m not going to buy a new Apple iPad with it).  Also, I have about $55 extra in my monthly budget.  Or maybe I should continue to add the $55 as “extra” payments on my mortgage?  Check out my recent post on how much money is going towards paying down the loan balance.

I’ve recently had a double whammy of a tax return and an Escrow refund in a single month.  While this was my money to begin with, it’s nice to have an influx of money come into the picture.  The key is to not go blow it on a trip or a new shiny gadget.  If you’re in a similar situation, use the money to fully fund a Roth IRA for the year or put it towards a down payment.  Or, maybe you need to pay off a credit card.  Do the smart thing for your financial situation!

5 Comments »

  • Money Beagle said:

    I think you're on the right track and that any of the options you mentioned: saving it, applying towards a Roth, or putting it towards extra payments is a great option. I am lucky enough to be handling my own taxes and insurance so I just apply the amount that I would have paid to the bank towards a savings account, and then pay from there. I've always overestimated to an extent, and combined with the drops in values, I've been able to slightly decrease my contributions except for last year when I boosted a couple of the riders on our homeowners insurance policy, which offset a good portion of the tax decrease.

  • LeanLifeCoach said:

    Any extra revenue we get goes straight to the mortgage.

    For us, even with a decrease in real estate prices our tax burden actually increased. I'm gearing up for the fight as I write!

  • Pandora Charm said:

    .Really nice work guys!! Your studio seems to be an amazing workplace. I would not fail to advertise you

  • blogc2011 said:

    Really nice work guys!! Your studio seems to be an amazing workplace. I would not fail to advertise you
    Skype video

  • blogc2011 said:

    Also, I have about $55 extra in my monthly budget. Or maybe I should continue to add the $55 as “extra” payments on my mortgage? Check out my recent post on locksmith service Northridge