Personal Finance and Investing

and probably a higher rate....

Yes, it's maddening when they agree to something and don't follow through.

Just curious why having the monthly payments exactly level (and the lump sum payment at the end of each year being whatever is needed to pay the increase in property taxes and insurance -- an unknown amount until near the end of the year) is so vital, compared to having the monthly payments change when the property tax/insurance changes -- every 6 months or a year.

And any end-of-year lump sum payment would have some interest added on to it...

[font color = red]On Edit[/font]OK, I'm thinking of my electric and gas bills -- I'm on "budget plan" or whatever where payments are level for a year, and then in the new budget year they come up with a new budget amount. If my usage overshot the plan's assumption the prior year, then my new budget plan amount will be higher to make up for that shortfall. And vice versa. Yes, that's nice and seems like mortgage companies could offer something like that.

I have a friend who has a mortgage with {tiny font}Chase{/tiny font} and that's how they do hers, except on a 6-month basis rather than a yearly basis -- its level for 6 months, and then adjusts.