Escrow payments rising nationwide with homeownership less attainable
https://www.fox32chicago.com/news/escrow-payments-rising-nationwide-homeownership-less-attainable?fbclid=Iwb21leAPU9BhjbGNrA9T0EWV4dG4DYWVtAjExAHNydGMGYXBwX2lkDDM1MDY4NTUzMTcyOAABHhCxrY-AiirVUg070WZDID2be9StCa6SeAvXt5ZS9NogwfGGLXK8-mIECrSQ_aem_p1-MaqPPbOTa7Rhk6uCbYQ
Posted by kootles10
7 Comments
From the article:
Rising escrow payments are eating into Americans’ budgets, creating an even bigger barrier for people trying to enter the housing market this year, according to a new report.
These escrow payments, the portion of a monthly mortgage that goes toward property taxes and homeowners insurance, are considered one of the biggest risks to the U.S. housing market in the new year, threatening market participation, according to the Cotality 2026 property market trends analysis.
In 2025, non-mortgage costs, which are essentially expenses required to own a home but not part of the loan and collected and paid by the lender, jumped 30%. However, some states, particularly those where natural disasters are more common, faced a steeper rise in costs.
For instance, in Florida and Colorado, escrow payments increased 55% and 57%, respectively, in 2025, according to Cotality’s analysis. Insurance premiums in those states were the primary driver of the escrow spike.
My mother, who is partially retired but well beyond retirement age, had her house go up by 160k in valuation between 2025 and 2026. Nothing done to the house, just by existing.
This isn’t an exaggeration, she was panicking yesterday about it and shared the info. I referenced the gis data as in writing this. On .09 acres of total land (rounded up)
The housing market is absolutely insane right now. It’s unsustainable.
Yeah my escrow payment each month is more than the mortgage payment with rising Taxes and Insurance in Texas. Its crazy.
Republicans always say you can’t tax unrealized gains but they house I bought has gone up 40% and they have taxed me on all 40% of that every year. Since in state of Texas homestead exemption doesn’t cap the first year you own the home.
Absolutely anecdotal: My payment, and those of the lions share of my neighbors, will drop this year. Substantially, for some. I’m in Texas. Why will it drop? Because of changes in homestead limits. The net long term effects of these changes are concerning because the law change negatively impacts tax revenue of public school districts. Low taxes…great. But low taxes at the expense of the public school system…not so great.
My escrow payment is higher than my monthly payment and my interest. I did refi during covid so the rate is pretty low but still, it’s kinda crazy to see that on your statement.
Just got hit with a 200 dollar jump in New Mexico. Bought our house a year and a half ago. Paid more than the monthly payment to pay it off faster. Can’t really do that anymore. Greedy fucking banks and taxes for what? States rolling over for the feddies. Useless insurance that doesn’t help. This country is fucked.
And if you have a hardship, the lender must consider your escrows when calculating an affordable payment, but those are not controlled by the lender.
Increasingly, it’s the escrow portion, not the bank’s loan payment, that causes someone to go to foreclosure sale, when the lender cannot reduce the payment far enough due to excessive escrows for property taxes, homeowners insurance, and any HOA.