Tool · Payment Shock
Why the payment jumps in year two — before it does
Your escrow at closing is built from the seller’s current tax bill. After the county reassesses at your purchase price, the tax rises and RESPA spreads the shortage over a year — so the payment spikes. This estimates that jump from public county rates, and names every piece.
From the listing — what the seller pays now. Your escrow at closing is sized from this.
Effective rate applied to your purchase price after the county reassesses.
Estimated year-2 payment jump
+$46/mo
at the first adjustment, then ~$23/mo ongoing after the shortage is repaid.
Escrow at closing is sized from the seller’s tax bill. After the county reassesses at your purchase price, the tax rises and — under RESPA — the servicer spreads the prior year’s shortage over the next 12 months, so the payment peaks before settling. This is the mechanism, not a prediction of your exact bill; assessment ratios, caps, and exemptions vary by jurisdiction.
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