One Positive Result From Plummeting Home Values
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!