2024 is fast approaching! This is a wonderful time to review financial responsibilities, like escrow and insurance coverage. Understanding these topics can help homeowners and policyholders start the new year with financial security.
According to NerdWallet, here are a few things you should expect when reviewing your escrow account for 2024:
• Annual escrow analysis: Your lender will conduct an annual escrow analysis and based on their findings the lender may adjust your monthly escrow payment.
• Property tax changes: Property tax assessments may change year to year. In the new year, prepare for adjustments to your monthly mortgage payments based on updated property tax rates.
• Insurance premium changes: Insurance premiums can also change due to increased coverage, claims history or policy adjustments. These changes can potentially have an impact on your escrow payments.
• Surplus and shortage: After your annual escrow analysis, there might be a surplus or shortage in your account. With surplus, you could receive a refund or apply it to your mortgage principal. In the case of a shortage, your lender will provide guidance on covering the deficit.
Consider the following when assessing your insurance policies for the new year:
• Coverage adequacy: Take some time to review your current insurance coverage. Life changes like home improvements, family additions, or new assets may require adjustments to your policies.
• Premium rates: Be aware of any changes in insurance premium rates. Some policies may increase while others may offer discounts for maintaining a good claims history or discounts for inspections like wind mitigation inspections. Did you know Habitat offers free wind mitigation inspections? Click here to learn more.
• Compare insurance policies: Shop around and compare insurance quotes. Different providers offer various coverage options and rates. You can find the best deal to save you money while staying insured.
• Deductibles: Reassess your deductibles to find the right balance between affordable premiums and manageable out-of-pocket expenses in case of a claim.
Reviewing your escrow account is important since it helps homeowners manage their property taxes and insurance premiums. Reviewing your insurance policies is equally important to safeguard your assets.
We can help!
Habitat Orlando & Osceola knows that increases in mortgage payments can cause a financial strain on a family. We can equip you with the necessary resources to navigate shifts in your monthly payments. Our HUD Housing Counseling Program is dedicated to offering assistance in financial management and budget counseling to provide you with the support you need.
Please fill out the interest form here to get connected with our certified HUD Housing Advisor team.
To learn more about home insurance, sign up for one of our upcoming classes here.