THE ANSWER LIBRARY
Answers for homeowners
Understand your payment, cash and choices. Start with the question that matters today.
692 published answers
Why do I keep getting an escrow shortage every year?
Repeated shortages can come from recurring increases, outdated estimates, changing bill dates or account errors. Review each year’s actual bills and projections instead of assuming the same explanation every time. Paying one shortage resolves that amount only; it does not prevent the next year’s covered costs from increasing.
Read the answerWhy does my escrow account need a cushion?
A cushion is an extra amount held in escrow to help cover changes and payment timing. Federal rules generally limit it to two months of estimated escrow payments, and a lower limit can apply under state law or your documents. The permitted limit is not a rule that every account must always hold two months.
Read the answerWhy might my new construction mortgage payment rise later?
Early tax estimates on a newly built home may not fully reflect the completed property’s later assessment. When taxes are updated, escrow collections and the full payment can change. Ask how the estimate was prepared and what the local tax authority expects. Do not assume the first payment represents the long term cost.
Read the answerWill appealing my property taxes lower my mortgage payment?
An appeal does not guarantee a lower tax bill or an immediate mortgage payment change. The local authority decides the assessment issue, and the servicer manages escrow based on bills and analysis. Follow the official appeal process while continuing to address current payment obligations and confirmed tax deadlines.
Read the answerCan I change homeowners insurance when my mortgage has escrow?
You can explore other policies, but coordinate any change with your insurance professional and mortgage servicer. Compare coverage as well as price, keep required coverage in place and confirm who pays each premium. A policy change can affect the escrow account and the next payment calculation.
Read the answerCan I remove FHA mortgage insurance the same way as PMI?
FHA mortgage insurance follows different rules from conventional PMI. Its duration can depend on factors such as when the loan was originated and the original loan terms. Ask the servicer to identify the applicable rule for your actual loan. Do not assume reaching a particular equity percentage automatically ends it.
Read the answerCan rising home value help me remove PMI?
It may under an applicable investor or servicer process, but an online value estimate does not automatically remove PMI. Ask which cancellation path applies, what value evidence is required and whether seasoning, payment history or other conditions matter. Original value based statutory rules and current value based options are not interchangeable.
Read the answerDo I need different insurance if I rent out my home?
Changing a home from your residence to a rental can change its insurance needs and mortgage considerations. Tell your licensed insurance professional and review the loan’s occupancy terms before renting it out. A policy written for your personal residence may not address the new use in the same way.
Read the answerDoes bundling home and auto insurance always save money?
No. Compare the total cost and protection across the policies, not just the discount shown on one of them. Coverage, deductibles and underwriting differ. Ask a licensed insurance professional for a clear comparison and consider what happens if one policy changes or no longer fits your needs.
Read the answerDoes homeowners insurance cover flooding?
Standard homeowners insurance generally does not cover flood damage. Separate flood coverage may be available through the National Flood Insurance Program or a private insurer. Ask a licensed insurance professional about the property, coverage and lender requirements. Being outside a high risk flood area does not mean there is no flood risk.
Read the answerDoes my insurance change if my old home is empty while I sell?
An empty or unoccupied home can change how a policy applies. Tell your licensed insurance professional about the move and expected timeline before leaving the property vacant. Ask what coverage or endorsement is needed and confirm mortgage requirements. Do not assume the old owner occupied policy remains suitable indefinitely.
Read the answerHomeowners insurance or mortgage insurance: which am I paying?
Homeowners insurance covers specified property risks under a policy. Mortgage insurance generally protects the lender if a borrower does not repay the loan. They are different products, and you may pay both. Removing mortgage insurance does not remove the need for required property coverage.
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