Last July, we refinanced our home. Our documents indicated a payment of $1,843 would be due monthly, with $311 going to escrow. The company we closed with immediately sold our mortgage, and we have continued to pay $1,843. But we have recently received an escrow disclosure statement from the new company indicating that our escrow is going up to $459 monthly. I, of course, was not too pleased with a 50% increase in my escrow, so I got my original loan documents and compared it to the escrow statement. The discrepancy is in the mortgage insurance premium - the original documents specify MIP to be $12.47 per month, while the escrow statement adjusts it to $123.47 per month. (This accounts for $111 of the $148 increase, while the rest is to make up the shortage due to us only paying $12 for the past 4 months.)
Our original loan application, completed in April, indicates MIP of $123.47. In a document of closing instructions to the title company, it indicates monthly MIP is 0.60% (which works out to $123.47). However, the same document has a reserves/impounds statement that indicates MIP reserves of 0 months at $12.47 per month. The "payment letter to borrower" indicates MIP is $12.47 per month, as does the "initial escrow account disclosure statement"
and "the itemization of amount financed". I can't find reference to the MIP amount anywhere else in the paperwork.
So my question to those of you smarter about these things than me is, how can they now raise my MIP like this? Can they just add $111, retroactively, to my loan amount?
It does appear that the correct amount is supposed to be $123, but I took the loan and signed it at $12 for the MIP escrow. It seems like it is their screw up, and I probably wouldn't have taken the loan if I'd known it was really $1,954 monthly - although still better than our old loan, it has a recovery period that is significantly longer than I'd anticipated.
Any thoughts? (Many of the numbers above have been fudged somewhat to maintain some semblance of privacy.)
Our original loan application, completed in April, indicates MIP of $123.47. In a document of closing instructions to the title company, it indicates monthly MIP is 0.60% (which works out to $123.47). However, the same document has a reserves/impounds statement that indicates MIP reserves of 0 months at $12.47 per month. The "payment letter to borrower" indicates MIP is $12.47 per month, as does the "initial escrow account disclosure statement"
and "the itemization of amount financed". I can't find reference to the MIP amount anywhere else in the paperwork.
So my question to those of you smarter about these things than me is, how can they now raise my MIP like this? Can they just add $111, retroactively, to my loan amount?
It does appear that the correct amount is supposed to be $123, but I took the loan and signed it at $12 for the MIP escrow. It seems like it is their screw up, and I probably wouldn't have taken the loan if I'd known it was really $1,954 monthly - although still better than our old loan, it has a recovery period that is significantly longer than I'd anticipated.
Any thoughts? (Many of the numbers above have been fudged somewhat to maintain some semblance of privacy.)