1 /5 Silvia: **PLEASE BE CAREFUL AFTER A YEAR WITH NAF.**
Initially, everything was great. However, after a year, we started receiving unexpected charges.
1. Every year, they calculate an escrow account balance. We were informed that the escrow account was for paying PMI and hazard insurance. However, they also require a minimum balance that is about $400 higher than just the costs for PMI and hazard insurance. After a year, the required minimum balance increased for no apparent reason, resulting in a charge of almost $300. It felt like a penalty because that amount was not contributing to the escrow balance; it seems like a savings account for them.
2. This year, we opted for cheaper hazard insurance, which saved us almost $700. However, after recalculating the escrow balance, they informed us that our monthly payment would actually be higher because they claimed our taxes would increase by $30. I applied for a homestead exemption, expecting my taxes to remain the same or even decrease by May. Nevertheless, out of the blue, they stated that our taxes would be higher.
It seems that the $700 we saved on insurance will not benefit us; they will keep it for themselves.
Please be cautious about all the charges you may encounter.
