Tuesday, March 28, 2006

Math is not my friend
Warning: This is a boring financialy/numbery post.

Every year, I get a letter from my mortgage company reporting on the past year's taxes and whatnot. This letter also announces my new mortgage payment for the next year, based on estimated taxes and whatnot. It's their best guess as to what my monthly payment will be, based on the history from the previous year.

The first year, they had WAY overestimated my taxes. Since they can't keep extra of my dollars lying around in my escrow* account, they had to send me a really nice check. It was like a surprise Christmas in May. PLUS, they estimated that my payment for the next year would be lower than what I had been paying.

SUPER! Owning a house is a piece of cake!

The next year, I got a HORRIBLE letter. Apparently they had UNDERestimated my taxes for that year, and I was low in my escrow account. I owed them lots of money. And my monthly payment for the next year went up. A lot.

I cried. I called people who could maybe get me out of it. They couldn't. I stressed out. I panicked that I would have to sell my house. Or WORSE, get a ROOMMATE.

Fortunately, my tax refund, plus my very sweet Daddy, made everything okay. But, I had to suck it up and get used to a higher mortgage payment each month.

So, last week I got the letter. I opened it. It told me I was short in my escrow account AGAIN. And they adjusted my monthly payment AGAIN. SHEESH!! I have no more money to give you people!

I put the letter away in frustration. I didn't even read all of it. I've been stressed about it all week.

Fast-forward to today, and I just looked at the letter again. Yes, I do have a shortage in my escrow account. But it's minor. And even with the shortage prorated over the next 12 months, my monthly payment will go DOWN a bit from this past year.

Um, yeah. So when I first looked at it last week, I noticed the last two numbers in the payment went from 30 to 74. And I immediately assumed this meant the WHOLE number went up.

Um, yeah. So after looking at it again and SUBTRACTING the two ammounts (because the first number is larger than the second - not the other way around), I'm much less stressed. I see that the difference in the numbers actually works in my favor this time.

Stupid math.

Yay somewhat-more-afforable housing!


*Do not ask me to explain to you what an escrow account it. I pretty much know. But I cannot explain it to you.

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