SPRINGFIELD, Ill., Oct 25, 2024 /PRNewswire/ — INB, NA, a leading locally owned bank Central Illinois The provider of escrow services for mortgage customers is addressing increasing concerns about increased mortgage payments due to higher homeowners insurance and property tax premiums. As these costs continue to rise, customers are experiencing a significant impact on their monthly payments, resulting in an increase in inquiries to INB’s mortgage department.
“Our customers are understandably upset,” he said Steven DayAVP, Loan Servicing Manager at INB. “We have seen cases where mortgage payments have increased by up to $939 a month. It can be a significant burden for many homeowners.”
Day emphasized that these rising costs affect everyone and provide limited options for customers seeking relief. INB advises homeowners to consider alternatives, such as: B. choose a different insurance carrier or dispute their property tax assessments with their local district. However, both options may not change anything. Home contents insurance rates Illinois have risen by 20 to 30% in the last 12 months, and tax appeals often produce disappointing results.
Day points out that while some individuals may abandon their escrow accounts in response to these increases, it is critical for homeowners to plan their tax and insurance payments to avoid financial stress.
“An escrow account remains a convenient way to manage these payments by accruing incremental savings over time,” Day said. “We are strong supporters of the escrow account because it helps ensure these costs are covered.”
Mortgage Operations support staff report that 75% of their calls now involve escrow accounts, a significant increase from previous levels. Customers often express frustration over the increased costs, even moving to tears. Loan officers (LOs) at INB work closely with customers to consider all available options, Day says, including spreading shortages over multiple years. But Day warns: “This approach simply extends the repayment period rather than reducing the overall burden.”
In some cases, homeowners have managed to offset the increase by foregoing private mortgage insurance (PMI). They are able to do this because, as most new reports show, property values are increasing. Once a customer has 20% equity in a home, they are no longer required to maintain PMI. According to the Urban Institute, the average cost of PMI insurance is 0.46 to 1.5 percent of the loan amount.
“We provide services for over 6,000 mortgage loans and our goal is to support our customers during these challenging times,” emphasizes Day. “It is important to remember that while there are some options to consider, it is important to have adequate insurance coverage and plan for property tax payments.”
