89 views 4 mins 0 comments

‘My Mortgage Went Up $1,000 And I Am Not OK’ — This New Homeowner Says She Was ‘Bamboozled’ And Warns Don’t Buy A Home If You’re Single

In Business
April 30, 2024

A woman sharing her ordeal as a new homeowner on TikTok has captured significant attention after revealing a sudden and steep increase in her mortgage payments by $1,000.

Whitney, known on TikTok as @wealthyywhit, shared her frustration and disbelief in a video that quickly went viral.

“My mortgage went up a thousand dollars and I am not OK,” she told her followers. “I was bamboozled.”

Whitney detailed how her initial payments were more manageable because they were only based on the land value of her new build. She highlighted a crucial oversight by her builder, whom she said failed to clearly explain how escrow analysis and property tax increases could significantly affect her mortgage payments.

Don’t Miss:

Typically, when a home is purchased, especially a new build, the initial property tax assessment is often based only on the land’s value, as the structure itself has not yet been fully appraised. This lower assessment results in lower initial mortgage payments.

However, once the construction is completed, the property is reassessed to include both the land and the newly built structure. This reassessment usually leads to a substantial increase in property taxes. Mortgage servicers conduct an escrow analysis annually to ensure that enough funds are collected to cover property taxes and homeowners insurance. If the new tax assessment is higher than initially estimated, the mortgage payment will increase to compensate for the shortfall in the escrow account. In Whitney’s case, the result was a $1,000 monthly increase.

Property taxes aren’t the only factor that can affect your monthly escrow payment. Homeowners insurance premiums can also fluctuate. The analysis may trigger an increase in your monthly mortgage payment to replenish the escrow account and cover the higher insurance cost.

The financial shock left Whitney wishing for simpler solutions. She asked the lender whether she could sell the house, to which she says they responded, “There’s no equity in it.”

Trending:

Now she said she is stuck. “I legit want to move back home and live with my parents. But I don’t have that option. I am sick,” she said, highlighting the emotional and financial strain unexpected costs can cause.

She ended her message with a warning to her viewers, especially those buying alone.

“Honestly don’t buy a house if you’re single,” she said. “Buy a house when there’s two incomes coming in because, baby, you gonna need it.”

Whitney’s story highlights a growing challenge for many aspiring homeowners. Recent reports indicate a steep rise in the income needed to afford a median-priced home in the U.S. The number has skyrocketed to around $110,871, making homeownership even more challenging, especially for single buyers like Whitney.

While having a double income can be helpful, there are ways for single buyers to navigate the market. Consider programs for first-time homebuyers, research lower-cost areas and factor in potential property tax increases when budgeting.

Read Next:

“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!

Get the latest stock analysis from Benzinga?

This article ‘My Mortgage Went Up $1,000 And I Am Not OK’ — This New Homeowner Says She Was ‘Bamboozled’ And Warns Don’t Buy A Home If You’re Single originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel210520-twitter-verified-cs-70cdee.jpg (1500×750)

Support Independent Journalism with a donation (Paypal, BTC, USDT, ETH)
whatsapp channel
Avatar
/ Published posts: 22857

The latest news from the News Agencies