A woman sharing her ordeal as a new homeowner on TikTok has garnered widespread attention after revealing a sudden and sharp $1,000 increase in her mortgage payments.
Whitney, known on TikTok as @wealthyywhit, shared her frustration and disbelief in a video that quickly went viral.
“My mortgage has gone up a thousand dollars and I’m not feeling well,” she told her followers. “I was amazed.”
Whitney explained that her initial payments were easier to manage because they were based only on the property value of her new home. She pointed to a key oversight by her builder, who she said did not clearly explain how escrow analysis and property tax increases could significantly impact her mortgage payments.
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Typically, the initial property tax assessment when purchasing a home, especially a new construction, is often based only on the value of the property because the structure itself has not yet been fully valued. This lower appraisal results in lower initial mortgage payments.
However, once construction is complete, the property is reassessed to include both the land and the newly constructed structure. This reassessment typically results in a significant increase in property taxes. Mortgage servicers conduct an escrow analysis annually to ensure enough funds are collected to cover property taxes and homeowners insurance. If the new tax bill is higher than initially estimated, the mortgage payment will increase to make up for the shortfall in the escrow account. In Whitney’s case, the result was a $1,000 monthly raise.
Property taxes aren’t the only factor that can affect your monthly escrow payment. Home contents insurance premiums can also fluctuate. The analysis may result in an increase in your monthly mortgage payment to replenish the escrow account and cover the increased insurance costs.
The financial shock made Whitney want simpler solutions. She asked the lender if she could sell the house, to which the lender replied: “There is no equity in it.”
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Now she said she was stuck. “I really want to move back home and live with my parents. But I don’t have that option. I’m sick,” she said, noting the emotional and financial toll that unexpected costs can cause.
She ended her message with a warning to her viewers, especially those who bought alone.
“Honestly, don’t buy a house if you’re single,” she said. “Buy a house when you have two incomes because, baby, you’re going to need it.”
Whitney’s story highlights the growing challenge for many would-be homeowners. Recent reports indicate a steep increase in the income required to afford an average-priced home in the United States. The number has risen to around $110,871, making owning a home even more difficult, especially for individual buyers like Whitney.
While dual income can be helpful, there are ways for solo buyers to navigate the market. Consider first-time homebuyer programs, research lower-cost areas, and factor in potential property tax increases when budgeting.
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This article “My Mortgage Is Up $1,000 and I’m Not Well” – This New Homeowner Says She’s Been ‘Overwhelmed’ and Warns Against Buying a Home If You’re Single originally appeared on Benzinga.com
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