Homeowner/House Thread: It's going to cost how much, now?

Jragghen

Yeah, it's probably property tax increases.

Mugsley

It's mostly increases but we've had 1-2 recent years where it was either nearly even or we got a minor refund. Most of the years it's been an increase, though.

That_Guy

I'm glad my escrow comes right out of my mortgage payment. I don't have to worry about getting 2 bills. In fact, when I got a better rate on my homeowner's insurance my total monthly went down by about $30 a month.

Edit: This is one of the reasons I recommend going with an independent mortgage broker instead of a bank or credit union. He referred me to a great independent lawyer. They both worked super hard to walk me through the process and made sure to get me the best experience possible. I've heard so many horror stories that make me glad I found the guy I did.

Mugsley

We went through an independent broker when we bought 7 years ago. Our mortgage got sold to Wells Fargo a year later.

That_Guy

Mugsley wrote: »

We went through an independent broker when we bought 7 years ago. Our mortgage got sold to Wells Fargo a year later.

Mine got resold a couple of times. It's been living at M&T for the last year. I'm thankful that nothing else changed. I just pay M&T every month and they handle filling the escrow account.

AbsoluteZero

My property taxes go up every year like clockwork, because the county finds another 10k in property value each year. Where are they finding it? Must have been hiding in my bushes.

Daenris

AbsoluteZero wrote: »

My property taxes go up every year like clockwork, because the county finds another 10k in property value each year. Where are they finding it? Must have been hiding in my bushes.

Yeah, our taxes go up a bit every year too, though it's capped as to how much it can increase in a year. So right now there's a massive discrepancy between our taxable value and our assessed value. That gets reset anytime the house is sold, so I feel sorry for the next owner if we sell as their property taxes will be way higher than we've been paying.

bowen

Mortgages going up $20 a month because taxes increased on your property is better than a landlord pegging out the max they can do a year relative to what your rent is just because they can and not because they actually have to deal with increased property tax (they do but it's not anywhere near the maximum rent amount).

People are usually okay with increases as long as they're e: not punitively large.

Ninjeff

Eeegads.
I just started the pre-approval process (and by "just started" i mean, i have an appt for it on monday) but this is all kind of freaking me out on home ownership.
I dont mind where i'm at right now (renting), and i'm financially stable. However, it would be nice to have a place with a bigger garage, more space, and a basement i can actually build a studio in.
But now im starting to wonder if i'm biting off more than i can chew....

Stabbity Style

Ninjeff wrote: »

Eeegads.
I just started the pre-approval process (and by "just started" i mean, i have an appt for it on monday) but this is all kind of freaking me out on home ownership.
I dont mind where i'm at right now (renting), and i'm financially stable. However, it would be nice to have a place with a bigger garage, more space, and a basement i can actually build a studio in.
But now im starting to wonder if i'm biting off more than i can chew....

It's definitely overwhelming! Definitely still having doubts. But also pretty excited.

Also, seeing the year 2050 on the loan documents kind of spooked me a bit, lol.

Mugsley

OH LOOK WHAT CAME IN THE MAIL

Mugsley

(in my case, our homeowners insurance premium and policy changed so this isn't a huge surprise)

chrishallett83

I don't understand why there is still an escrow account after the house has been closed, the old owners have their money, and the mortgage is with the bank. Who is the escrow account holding money for at that point? The bank is billing you monthly for the mortgage, the old owners have their money, what is even the purpose of still having an escrow account open?

Ketar

chrishallett83 wrote: »

I don't understand why there is still an escrow account after the house has been closed, the old owners have their money, and the mortgage is with the bank. Who is the escrow account holding money for at that point? The bank is billing you monthly for the mortgage, the old owners have their money, what is even the purpose of still having an escrow account open?

Some lenders require an escrow account for your property taxes and homeowners insurance. Rather than paying those two yourself, you end up paying a portion of the yearly amount due with each mortgage payment that you make. It is held in escrow and then your lender makes the payments on your behalf at the appropriate time.

It's most typical when you put less than 20% down when buying, and can generally be opted out from once you've hit 20% equity.

a5ehren

Ketar wrote: »

chrishallett83 wrote: »

I don't understand why there is still an escrow account after the house has been closed, the old owners have their money, and the mortgage is with the bank. Who is the escrow account holding money for at that point? The bank is billing you monthly for the mortgage, the old owners have their money, what is even the purpose of still having an escrow account open?

Some lenders require an escrow account for your property taxes and homeowners insurance. Rather than paying those two yourself, you end up paying a portion of the yearly amount due with each mortgage payment that you make. It is held in escrow and then your lender makes the payments on your behalf at the appropriate time.

It's most typical when you put less than 20% down when buying, and can generally be opted out from once you've hit 20% equity.

Both of my lenders said they would charge higher interest rates (like a quarter-point) if I opted out of escrow. And that's with a ~60% LTV.

chrishallett83

That seems like a lot of extra hassle when they could just roll those expenses into the mortgage if they can't trust the homeowner to pay them.

I know that here in Australia if our house is uninsured and the bank (in our particular case actually the state government) finds out, they can begin legal proceedings to take the property from us, as they still own it.

Syngyne

Speaking of escrow and property taxes, being a first time homeowner, I didn't realize that my mortgage payment included my property taxes, so when the bill came in from the county it was a bit of a shock. I paid it without realizing that it would automatically be paid at the end of the year from the escrow account, so my savings took a $5k hit.

After I found out it was covered in the mortgage payment I made a couple of phone calls, and the bank verified my taxes were paid, and after they did an escrow evaluation they'd mail me a refund check. So, I've been hovering around my mailbox all week waiting for the refund to come in. I finally get a letter from my bank, and inside is a check.

For $0.10.

I went back through the documents online, and it turns out they did two evaluations for some reason, one that gave the $0.10 amount, and the other for the full refund amount. Given the timing, the other check should hopefully be arriving in a day or two.

Ketar

chrishallett83 wrote: »

That seems like a lot of extra hassle when they could just roll those expenses into the mortgage if they can't trust the homeowner to pay them.

I know that here in Australia if our house is uninsured and the bank (in our particular case actually the state government) finds out, they can begin legal proceedings to take the property from us, as they still own it.

Extra hassle for who? The homeowner just makes 1 single payment to the lender every month. It's the lender who separates out the portion that's going into escrow, and I'd imagine that: A) There are legal reasons for doing so and B) It's all automated anyway so there isn't any actual hassle.

That_Guy

chrishallett83 wrote: »

That seems like a lot of extra hassle when they could just roll those expenses into the mortgage if they can't trust the homeowner to pay them.

I know that here in Australia if our house is uninsured and the bank (in our particular case actually the state government) finds out, they can begin legal proceedings to take the property from us, as they still own it.

I live in the US and that's how my mortgage works too. I know it's 2 separate accounts but it's a payment to 1 place. I think they do a separate account to make it easier to pay out to the different companies all involved with buying and insuring a house. This thread is the first I've ever heard of (in my extremely limited experience) having a separate bill for escrow.

Edit: I asked around my office and everyone else's escrow is funded directly from their regular mortgage payment.

a5ehren

Lenders like it because it decreases the risk of you having a lien filed against your house. They might take a bath on the value if the county repos your house and auctions it.

Daenris

That_Guy wrote: »

chrishallett83 wrote: »

That seems like a lot of extra hassle when they could just roll those expenses into the mortgage if they can't trust the homeowner to pay them.

I know that here in Australia if our house is uninsured and the bank (in our particular case actually the state government) finds out, they can begin legal proceedings to take the property from us, as they still own it.

I live in the US and that's how my mortgage works too. I know it's 2 separate accounts but it's a payment to 1 place. I think they do a separate account to make it easier to pay out to the different companies all involved with buying and insuring a house. This thread is the first I've ever heard of (in my extremely limited experience) having a separate bill for escrow.

Edit: I asked around my office and everyone else's escrow is funded directly from their regular mortgage payment.

Has anyone here actually said they pay a separate escrow payment? That wasn't the impression I got. It's all just one check for me, part goes to my mortgage, and part goes to escrow. But behind the scenes the bank has to make sure the escrow account is at the proper level, and they do yearly rebalancing to make sure. Sometimes that means they need an extra one time payment to fill it up, sometimes it means the monthly mortgage+escrow payment goes up a bit, sometimes it means a refund check to the homeowner.

Mugsley

Yes, this is how mine works. One account handles mortgage, property taxes, and insurance

Stabbity Style

I dunno, I'm in favor of it. I'd want to be setting aside the money each month anyway, so having them take care of it for me and make the payment makes things easier for me. Of course, you lose the flexibility of having that money around yourself, but whatever. Ideally you shouldn't be dipping into money you have set aside for bills anyway.

Straygatsby

I'd be annoyed if the single payment that went out every month didn't cover those three things - regardless of what cash is actually in escrow (impounded) or not. Home ownership is complicated enough! =P

Should be picking up our keys in the next few days. Dreading the move, but at least it's local, and because we went from house to apartment first, we're way pared down and ready to go.

I'll probably be really sore next week, though.

Also I can't wait to see if I can detach and move a stacked washer/dryer in a closet without killing myself.

Opty

If you've got someone to help you, be sure to get one of those furniture moving straps that work with two people, they're amazing

OneAngryPossum

Had to replace the ballast in the fluorescent fixture in the laundry room - not sure why, but the previous owners seemed to reaaaaaallly love those long fluorescent bulbs, they’re all over the basement too.

Three trips to the hardware store and 4 hours later (after sunset and dragging a lamp on an extension cord into the room so I could see again), it works! Was worried I didn’t understand the various ballast types well enough to get the right replacement when the lights still wouldn’t turn on, but apparently I forgot to tie the neutral from the ballast to the house wiring, so that was a relief/embarrassment.

I’m dangerously close to thinking I can handle full on fixture replacements all over the house now.

Next project is finding out why there are loose cat5 cords dangling in the basement - it’s half-finished, and I’m wondering how much work they left for me if I wanted to replace the phone outlets with Ethernet.

So many questions I wish I’d asked two months ago.

MichaelLC

OneAngryPossum wrote: »

So many questions I wish I’d asked two months ago.

Yup, I had - and continue to have - a lot of those moments.

Qanamil

I'm finally just down to the large furniture to move so gotta somehow con some people into helping me load a uhaul.

OneAngryPossum

MichaelLC wrote: »

OneAngryPossum wrote: »

So many questions I wish I’d asked two months ago.

Yup, I had - and continue to have - a lot of those moments.

Two most important unanswered questions:

1. Why is there a dry rag wrapped around a single copper pipe in the basement?

2. Is the extension ladder hanging on the garage wall a key structural component, or am I just very weak?

2a. How does one person conceivably move a 28 foot extension ladder?

Shadowfire

OneAngryPossum wrote: »

Had to replace the ballast in the fluorescent fixture in the laundry room - not sure why, but the previous owners seemed to reaaaaaallly love those long fluorescent bulbs, they’re all over the basement too.

Three trips to the hardware store and 4 hours later (after sunset and dragging a lamp on an extension cord into the room so I could see again), it works! Was worried I didn’t understand the various ballast types well enough to get the right replacement when the lights still wouldn’t turn on, but apparently I forgot to tie the neutral from the ballast to the house wiring, so that was a relief/embarrassment.

I’m dangerously close to thinking I can handle full on fixture replacements all over the house now.

Next project is finding out why there are loose cat5 cords dangling in the basement - it’s half-finished, and I’m wondering how much work they left for me if I wanted to replace the phone outlets with Ethernet.

So many questions I wish I’d asked two months ago.

Probably just cutting the plugs off and putting the rj45 punch downs in place. One of these will tell you which outlet runs to which wire if they're not labeled correctly.

evilmrhenry

Can anyone recommend a home inspector around the Kirkland WA area?

MichaelLC

OneAngryPossum wrote: »

MichaelLC wrote: »

OneAngryPossum wrote: »

So many questions I wish I’d asked two months ago.

Yup, I had - and continue to have - a lot of those moments.

Two most important unanswered questions:

1. Why is there a dry rag wrapped around a single copper pipe in the basement?

2. Is the extension ladder hanging on the garage wall a key structural component, or am I just very weak?

2a. How does one person conceivably move a 28 foot extension ladder?

1. The copper was leaking out and that stuff is expensive.
2a. No, but is load bearing.
2b. With maximum effort.

I will say I do love my folding extension ladder; it's like 6' that fold out to 22' or so. But silly to get one if you have one already. Is it hooked/tied down somewhere you don't see?

Aioua

evilmrhenry wrote: »

Can anyone recommend a home inspector around the Kirkland WA area?

I used these guys when I bought my condo and I thought they were pretty good.

https://acehomeinspectionllc.net/

Quid

I bought my home a few years ago for 325k.

Per Redfin, it jumped up in value to 350k last November, before coming back down to about 330k.

Dafuq?

That_Guy

Quid wrote: »

I bought my home a few years ago for 325k.

Per Redfin, it jumped up in value to 350k last November, before coming back down to about 330k.

Dafuq?

Something similar happened with my townhome on Zillow. I think it's mostly inaccuracies in the site metrics. My place stared at the 162k I paid for it, ballooned up to 220k before going back down to 170k before finally stabilizing around 180k. I know that's low because the place next to me went for about 190k and it doesn't have my fireplace.

electricitylikesme

Meanwhile in Sydney...



1.4m

https://www.domain.com.au/news/auction-market-stays-hot-as-dilapidated-properties-sell-under-the-hammer-in-sydney-911886/?utm_campaign=featured-masthead&utm_source=smh&utm_medium=link

matt has a problem

Still have to cut two half bricks and sand the gaps, but the patio is once again a patio.

Tomanta

Meanwhile, 7 months into the house and the foundation is shifting. We knew it had work done a couple of years ago. Here's hoping they honor their warranty...

MNC Dover

The wife and I bought our house this day 5 years ago and we paid it off in full before our second was born 1.5 years ago. The wife doesn’t like to talk about it because it comes off as bragging. She’s not wrong, but I get so proud of her ability to manage money that I have e to share it with someone.

So humble brag aside, I want to string up lights in the house this year. Normally I just run a string over the garage, but I want to do the windows and maybe the frame this time. Any advice on what I should prep or buy?

Stabbity Style

Welp, talked with the ethernet guy today. He said they'd need to take down some sheetrock/drywall to run stuff and they don't put it back up, so I'll probably need to hire someone else to do that if I go down that route. I dunno how much it costs to hire someone to replace/mud the sheetrock/drywall they'll take down, but it sounds expensive. I should get a quote back from him for the ethernet stuff next week, so I guess I'll see then.

The thread title has never felt more real :|