March 5, 2014

Mortgage Payment Increase - Re-evaluating the Rental Income

I received a letter today that our mortgage payment for the rental property will be increasing from $312/month to $394/month starting in April.  Yuck!  It's due to a shortage in our escrow account.

This is how this will affect our rental budget.

Rent Check: $825

March Budget                              April Budget
$312 Mortgage Payment                 $394 Mortgage Payment
$110 Condo Association                $110 Condo Association
$60 Bowling                                  $60 Bowling
$100 Home Repair                         $100 Home Repair
$50 Water                                     $50 Water
$75 My Savings                             $50 My Savings
$75 Mr. R Savings                         $50 Mr. R Savings
$43 Condo Insurance                     $11 Condo Insurance(saving annual premium)
 (savings for annual premium)

2 comments:

  1. I just had my mortgage increase due to the shortage in escrow. I just paid this difference. I wrote a check for 149 dollars this morning. I get this notice every two years, and it's been 12 years since I bought the house. I had one year when we had a decrease in the mortgage, but that was back in the beginning of the process. Is the increase going to affect the rent that you charge?

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    Replies
    1. It won't be affecting the rent we are charging. The rent we charge is already on the high side for our area so I couldn't increasing it. We'll just see less profit now.

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