Depending on your lender, you might be able to get away with not escrowing for taxes and insurance. Keep in mind if you are able to do this, you will have to pay your quarterly tax bill and monthly insurance bill in addition to your mortgage.
I'm assuming you knew these numbers before closing on the condo. Unfortunately I don't think there's much you can do. When you say "too high" do you mean that taking your escrow amount and dividing it by the 12 months and comparing it to your insurance and property taxes the number is too high (putting into escrow more than what's coming out) or do you mean too high referring to your budget? Unless you insurance and/or taxes are going down, your escrow amount will not decrease. If taxes were to one day go up on your property, eventually the escrow would increase. You can ask your lender to pay a lump sum into your escrow and for them to deduct less each month. Either the way - the escrow must be covered. If you pay less into escrow (which your lender wouldn't allow) and you come up short at the end of the year when your lender provides you with an itemized yearly statement showing your escrow balance, you must either come up with the difference in one shot or break it up monthly thus raising your monthly payment.
Another option which I'm not even sure would be available or a wise decision would be to pay your taxes on your own. That may reduce your monthly payment but every quarter you would need to come up with that lump sum to pay your taxes. Unless you have a job wherein you received quarterly bonuses, you would have to save each month for that quarterly payment which would be the same as it coming from your mortgage payment into escrow.
Gina Chirico, Sales Associate
973-575-6353 ext 17 office
If you closed you should have been aware what these payments would have been
Insurance you might be able reduce contact your agent HOWEVER all lenders have certain limits which must be meet.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Realtor, GRI, CSSN
John Hall & Associates