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Having seen the mysterious voodoo calculation of a bank-run escrow account cause extremely odd changes and fluctuations, if you are at all capable/responsible of budgeting and saving money on your own you should absolutely manage the property taxes yourself.
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Jan 24, 2014 15:59
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I have found that having the lender handle the taxes and insurance via escrow is extremely convenient...
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Jan 24, 2014 15:59
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slap me silly posted:I have found that having the lender handle the taxes and insurance via escrow is extremely convenient... It's extremely convenient up until they screw up or pay late, then you get hit with late fees, which don't get tacked on to the next payment, which generates more late fees because the escrow company didn't pay the previous bill in full, and so on and so forth with the snowball. If you're taking care of your own taxes and insurance, if you screw up, YOU screwed up, not a middleman, and you can fix things a lot easier than playing phone tag with the escrow company.
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Jan 24, 2014 16:06
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daggerdragon posted:It's extremely convenient up until they screw up or pay late, then you get hit with late fees, which don't get tacked on to the next payment, which generates more late fees because the escrow company didn't pay the previous bill in full, and so on and so forth with the snowball. Agree. I ran into exactly this last year when my mortgage/escrow company was late on the HOI payment. I got dinged with a late fee and they raised my escrow contribution to compensate. I called to complain and got an Asian woman who was utterly of incapable of A) speaking without yelling and B) understanding and rectifying the problem. I'm buying my next house in April and I won't be making that mistake again.
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Jan 24, 2014 16:29
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Also agreed. I was in my house for just over 2 years, but the first year the escrow massively overestimated my tax payment so I ended up getting a few thousand back as a refund. Then the next year they went the other way and pretty much paid no taxes and as I was getting ready to sell, they wanted to raise my house payment by almost $300 a month to cover $200 for property tax (which would have been massively overpaid again) and another $100 for homeowners insurance, when the premium was only raised by $150 a year. Escrow companies are dumb dumb dumb and you should absolutely do it yourself if you can.
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Jan 24, 2014 16:44
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Huh, interesting. I have had three different servicers in the last 4 years and every one has been spot on.
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Jan 24, 2014 16:48
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SlapActionJackson posted:Self-quoting from like 3 years ago in this thread about why escrow sucks. Not to mention that banks frequently overestimate the tax liability and get to hold your money with little recourse beyond a refund at the end of the year. WF overestimated my tax liability by almost $600 and my taxes are $1800 a year. Then they increased the amount of monthly escrow the following year. It's so annoying to be giving them a free loan, when they're charging me for a interest rate
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Jan 24, 2014 17:32
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Lack of escrow also forces you to be more aware of your homeowners insurance premium, if it's being auto billed/paid with nothing directly out of pocket for you, it's pretty easy to for them to slip a $50 or $100 rate increase in. We've done it both ways and I very much prefer not having it.
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Jan 24, 2014 17:36
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I remember my loan having a penalty for waiving escrow that would have far outweighed just keeping the money in a savings account myself. When the bank overestimates escrow, the overage just goes toward principle, so whatever.
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Jan 24, 2014 20:12
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I paid something like $50 to waive escrow. Probably still enough to exceed the interest I might earn, but avoiding dealing with the bank if the escrow gets screwed up somehow is still easily worth it to me.
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Jan 24, 2014 20:25
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I was required to do escrow for the first year as part of my loan terms. I've continued the escrow voluntarily after that, and never had a problem with it. I like the convenience (I happen to bank with the bank that holds my loan, so I set up direct withdrawal of both the loan payment and the escrow payment from my checking account, which is free) and they've never made a mistake. If they screwed something up, I'd just pull out of the escrow, but for now it's nice to smooth out my payments without having to do the math myself and set aside the right amount so that when my property tax bill or insurance premium is due I'll have the right amount available.
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Jan 24, 2014 20:27
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We got a list of disclosures on a house, and other than minor things that need to be fixed that all together would probably come out to under 10k and not need to be done immediately, it was mentioned it had an older electrical system she referred to as "knobs and tubes"? Is the main concern just power draw? I lived in a house that was about 12 years older for a bit and had not had the electrical systems updated, and other than blowing a fuse when running the washing machine, dryer, and microwave at the same time it did not seem like that big of a deal?
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Jan 25, 2014 18:17
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You are receiving this broadcast as a dream...We are transmitting from the year one nine... nine nine ...You are receiving this broadcast in order t
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Pain of Mind posted:We got a list of disclosures on a house, and other than minor things that need to be fixed that all together would probably come out to under 10k and not need to be done immediately, it was mentioned it had an older electrical system she referred to as "knobs and tubes"? Is the main concern just power draw? I lived in a house that was about 12 years older for a bit and had not had the electrical systems updated, and other than blowing a fuse when running the washing machine, dryer, and microwave at the same time it did not seem like that big of a deal? Knob and tube is a very old standard (we're talking beginning of the century) and is a fire hazard. Most homeowners insurances won't cover a house with knob+tube and for good reason. This is a big deal and should be torn out and replaced immediately, if not on the seller's dime, then it will be on YOUR dime. Electricians aren't cheap. http://en.wikipedia.org/wiki/Knob_and_tube_wiring Edit: $5 says that if you start ripping out walls to replace the wiring, you're going to find all sorts of fun things in those walls as well as a ridiculous lack of insulation. daggerdragon fucked around with this message at 18:40 on Jan 25, 2014 |
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Jan 25, 2014 18:37
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I'm sure it varies by region, but somebody should consider adding a table to the OP for common issues with houses of a certain age range—e.g., asbestos was used heavily between 19XX and 19YY; knob and tube between years of... etc.
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Jan 25, 2014 18:45
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daggerdragon posted:Knob and tube is a very old standard (we're talking beginning of the century) and is a fire hazard. Most homeowners insurances won't cover a house with knob+tube and for good reason. This is a big deal and should be torn out and replaced immediately, if not on the seller's dime, then it will be on YOUR dime. Electricians aren't cheap. To be fair, I just bought a house with K&T wiring and my insurance rate is no different than if I replaced it with romex. This varies widely, so you'll have to call your insurance company and ask. K&T is safe if the insulation is in good condition, the circuits haven't been extended past original design, and if wall/ceiling insulation hasn't been added.
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Jan 25, 2014 18:53
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Hmm, the house was built in the late 50's, could I been mistaken on the type of wiring? The wiki link mentions it kind of died out in the 30s. Maybe I misunderstood and it is not K&T? How much would it cost approximately to replace it if it was?
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Jan 25, 2014 19:42
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Pain of Mind posted:Hmm, the house was built in the late 50's, could I been mistaken on the type of wiring? The wiki link mentions it kind of died out in the 30s. Maybe I misunderstood and it is not K&T? How much would it cost approximately to replace it if it was? Nah, it's still in use. You'll know if you go into the basement and instead of one of these:  you see something like this:  That clusterfuck is knob and tube. If you blow a fuse (each of the round bits), you're replacing the entire fuse at $5-$10 a pop. Good luck finding them at Home Depot... Stultus Maximus posted:To be fair, I just bought a house with K&T wiring and my insurance rate is no different than if I replaced it with romex. This varies widely, so you'll have to call your insurance company and ask. K&T is safe if the insulation is in good condition, the circuits haven't been extended past original design, and if wall/ceiling insulation hasn't been added. I'm surprised your insurance company would cover the house. What company and where's the house? NYCM gave me exactly 2 months on the dot with a temporary insurance that had a laundry list of exclusions (pretty much nothing relating to fire that could be caused by electricity) to completely rip out the K&T wiring and show them proof of inspection of the new wiring before they'd cover my house properly. The only way you're going to find out if that Schrodinger's daggerdragon fucked around with this message at 21:18 on Jan 25, 2014 |
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Jan 25, 2014 21:09
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On the other hand, even if you see a modern fusebox, that does not mean that all of the wiring in the house has been upgraded to something modern. It should have been, and it's hazardous if it hasn't, but people do all kinds of bad wrong things. I do think a house built in the 50s is not likely to have knob and tube, though. 1950s Vintage Wiring Awareness is a useful blog post article thingy about this, although it's short. Old House Wiring has more info. The takeaway is that you should have an electrician inspect, and if they advise you to update the system, do so. The other takeaway is that if you don't upgrade the system, it's very likely you'll have a lot of rooms on the same 15-amp circuit, which was fine back when all anyone plugged in in a bedroom was maybe a couple of lamps and an alarm clock. Nowadays if you're putting a TV, a computer, running your vacuum cleaner, and so forth, you might overstress the circuit and find you're blowing the fuse a lot. If you decide not to update your wiring, you may still want to consider swapping any outlets that are not grounded, to GFCI outlets. This protects you from electrocution and provides better protection from an electrical fire, although it's not quite as good as actually putting in fully-grounded modern wiring and outlets.
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Jan 25, 2014 21:20
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daggerdragon posted:Nah, it's still in use. You'll know if you go into the basement and instead of one of these: USAA and St. Louis. Also, my K&T is attached to a modern breaker box. USAA said that the important thing was that the breaker box was at least 100 amp, that was more important than the K&T wiring. Also, this is what K&T looks like: 
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Jan 25, 2014 21:25
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daggerdragon posted:you see something like this: Ha, you actually can get those fuses at Home Depot! I just had to replace one of those fuses after it blew in the apartment we're moving out of. I also learned that: 1) Whoever put the last fuse in used a 25 instead of the 20 fuse you're supposed to use and 2) The wiring here is weird and the labels in the box were wrong, so we found out that our fridge, microwave, coffee machines, blender etc. are all on the same circuit as my custom built computer with a triple monitor set-up.  I didn't know that was an indicator of knob and tube as well. How the gently caress we haven't died in a fire or have all our electronics blow out is even more mind boggling now... Yeah, I can't wait to move into our house! Edit: The sellers just had the panel replaced... 200 amps with completely modern wiring and every socket in the kitchen is GFCI with each one on a different circuit. I'd run a  Van Der Graaf generator to celebrate if I wasn't paying separately for electric now! Hakarne fucked around with this message at 22:28 on Jan 25, 2014 |
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Jan 25, 2014 22:15
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Stultus Maximus posted:USAA and St. Louis. Also, my K&T is attached to a modern breaker box. USAA said that the important thing was that the breaker box was at least 100 amp, that was more important than the K&T wiring.  Hakarne posted:Ha, you actually can get those fuses at Home Depot! I just had to replace one of those fuses after it blew in the apartment we're moving out of. Interesting, mine doesn't have any in stock according to their online inventory. Out of curiosity, how much were your replacement fuses? daggerdragon fucked around with this message at 23:07 on Jan 25, 2014 |
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Jan 25, 2014 23:04
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hurr double post
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Jan 25, 2014 23:06
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daggerdragon posted:
They were like $5-$7 a pop. Not too terrible, but I'm looking forward to having a circuit breaker again. Edit: This is the same type of fuse, right? http://www.homedepot.com/p/Cooper-Bussmann-TL-Style-20-Amp-Plug-Fuse-4-Pack-TL-20PK4/100033249
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Jan 25, 2014 23:11
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How about a 4-pack on Amazon (prime) for $5.32? These are SL fuses for use on a circuit where you're running a motor, but Amazon has the other kinds too.
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Jan 26, 2014 01:48
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Kind house people: talk to me about probate sales (or tell me to go read the drat thread more closely).
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Jan 26, 2014 08:21
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The inspecting electrician informed me that The home my wife and I signed a contract on has a Zinsco electrical panel that should be replaced. Of course now the realtor is telling my wife and I that SHE lived 20 years with a zinsco panel and it was totally fine, so just ignore the black box warning on our inspection sheet. For my part I want that piece of poo poo gone before we even think about closing. Am I being reasonable?
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Jan 27, 2014 19:42
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From Wiki.... The company was sold in 1973 to GTE-Sylvania, who continued to manufacture breakers and panels to the original Zinsco design for some years; this product line is now discontinued. Zinsco electrical equipment is considered obsolete, due to a design flaw in which the circuit breaker's connection to the bus bar becomes loose, causing arcing and subsequent overheating. Long term exposure to this heat can cause the breaker to fuse to the bus bar, making it impossible to remove. Even worse, it can cause the breaker's contacts to fuse together, thus preventing the breaker from tripping even in an overcurrent situation, thereby causing a potential fire hazard. Yeah, I would want it out too.
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Jan 27, 2014 19:56
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Depending on your loan provider, you might not even get the loan with those panels. It's one of those items that are big red "needs fixed right now or no money."
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Jan 27, 2014 20:12
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Sounds like a good chance for a large insurance claim and or smoke inhalation death. Also fire your realtor.
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Jan 27, 2014 20:47
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Elephanthead posted:Sounds like a good chance for a large insurance claim and or smoke inhalation death. Also fire your realtor. I'm hoping it's the seller's realtor saying that? I hope?
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Jan 27, 2014 22:29
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silvergoose posted:I'm hoping it's the seller's realtor saying that? I hope? I wish.
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Jan 27, 2014 23:52
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Julio Cesar Fatass posted:I wish.
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Jan 28, 2014 01:06
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Julio Cesar Fatass posted:I wish. Then yeah, "want that piece of poo poo gone" should probably refer also to the realtor. Ugh.
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Jan 28, 2014 13:42
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We made a bid about 8% over asking, and it turns out someone bid 35% over asking, and it went for like 220k more than surrounding houses which were in better condition. This is the house I mentioned that had K&T wiring. Oh well.
Pain of Mind fucked around with this message at 05:51 on Jan 29, 2014 |
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Jan 29, 2014 05:49
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Mortgage question regarding declaration of assets. My wife and her parents jointly hold a checking account with a $200K+ balance. 100% of the money is from deposits by her parents over her lifetime, almost like a UGTM or "inheritance" account. Can I include the statements for that account in the approval process? The better question is, should I? Edit: I should state that I have enough liquid and reserve assets between my checking, savings, and IRA to cover the upfront costs and safety net in this case, but I'm curious if including that huge account would improve my odds of being approved. Cenodoxus fucked around with this message at 01:31 on Jan 30, 2014 |
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Jan 30, 2014 01:26
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Cenodoxus posted:My wife and her parents jointly hold a checking account with a $200K+ balance. 100% of the money is from deposits by her parents over her lifetime, almost like a UGTM or "inheritance" account. Why the hell do you hold that much money in a checking account?! That's insane.
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Jan 30, 2014 01:30
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Cranbe posted:Why the hell do you hold that much money in a checking account?! That's insane. My father-in-law has a deep-seated fear of brokerages and the stock market. But agh, all that potential interest...  I die a little inside every time I see the balance and imagine what it could be with compounding interest of more than .5%.
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Jan 30, 2014 01:34
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Cenodoxus posted:Mortgage question regarding declaration of assets. Is your wife involved in any way with paying for the house? If so, then yes, it's not a matter of "should" but probably "must." And of course having more liquid assets available will allow you to qualify for a larger mortgage. It likely won't affect the rate you're offered at all. Cenodoxus posted:My father-in-law has a deep-seated fear of brokerages and the stock market. But agh, all that potential interest... Those aren't the only options. He could buy US treasuries or CDs and have a guaranteed, insured income. Keeping it in a checking account is terrible.
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Jan 30, 2014 01:39
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Leperflesh posted:Keeping it in a checking account is terrible.
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Jan 30, 2014 01:41
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Cenodoxus posted:Mortgage question regarding declaration of assets. You'll need a signed, notarized letter from all the joint account holders saying that you can have access to all the money in that account and as long as the money is "seasoned" (in my case they wanted to see the funds in the joint account untouched for 4 months) then it can be used to help you secure the loan. That was my situation anyway. YMMV.
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Jan 30, 2014 01:43
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