Farmers & Merchants State Bank
Updated Thu January 8, 2026
Published Under: Home Loans
The end of the year has a way of sneaking up on homeowners. Between holiday plans, winter weather, shorter days, and full mailboxes, it’s easy to glance at a bank letter or insurance notice and think, “I’ll deal with that after the holidays.”
But don't worry — you're not doing anything wrong. Homeownership comes with a lot of moving parts, especially at year-end. But overlooking a few key things now can lead to stress, confusion, or surprise expenses in January.
Here are some of the most common homeownership mistakes people make at the end of the year, and simple ways to stay ahead of them.
1. Ignoring Escrow Letters Because They’re Confusing
Escrow letters almost always seem to arrive at the worst possible time, and they’re rarely written in plain English.
Why does this matter?
Escrow letters explain changes related to your property taxes or homeowners' insurance. Those changes can directly impact your monthly mortgage payment, often starting in January.
What we see happen:
- Letters get set aside
- Payment changes go unnoticed
- January arrives with an unexpected increase
What to do instead:
- Open the letter, even if you don’t understand it right away
- Look for phrases like “payment change,” “shortage,” or “analysis”
- Call your bank and ask questions
At Farmers & Merchants State Bank, we’d much rather walk through it with you now than help untangle confusion later.
Related Reading: Everything You Need to Know about Escrow
2. Assuming Your Homeowners Insurance Renewal Didn’t Change
Many homeowners assume their insurance renewal is the same as last year — until it quietly isn’t.
Why does this matter?
Insurance premiums often increase due to rebuilding costs, weather risks, or policy updates. Even small increases can affect your escrow account and monthly payment.
What to do instead:
- Review your insurance renewal notice
- Confirm the premium amount
- Understand how changes flow into escrow
A quick review now can prevent frustration when your payment changes later.
Read More: The Homeowner’s Guide to Home Insurance
3. Not Budgeting for a January Mortgage Payment Change
January is one of the most common times for mortgage payments to change, especially if escrow was adjusted.
Why does this matter?
A higher payment right after the holidays can catch people off guard and strain monthly budgets.
What to do instead:
- Review your escrow statement in December
- Plan for the possibility of a higher payment
- Adjust your budget ahead of time
Knowing what’s coming is half the battle.
4. Overlooking Property Tax Details
Property taxes play a big role in escrow, but many homeowners don’t look closely at assessments or due dates.
Why does this matter?
Errors or changes in property taxes can cause escrow shortages or higher future payments.
What to do instead:
- Review your property tax assessment
- Make sure information looks accurate
- Address questions early — not after deadlines pass
Even a quick check can make a difference.
Learn More: The Homeowner’s Guide to Property Taxes
5. Waiting Until January to Think About Taxes
Mortgage interest statements and tax-related documents usually arrive around year-end or early January.
Why does this matter?
Waiting too long can turn tax season into a scramble.
What to do instead:
- Gather documents as they arrive
- Store them digitally or in one place
- Make tax prep smoother before January starts
A little organization now saves a LOT of stress later.
Read Now: Preparing to File Your Taxes: A Guide for the Upcoming Tax Season
6. Assuming Reviewing Your Mortgage Can Wait
Many homeowners think mortgage reviews only matter when buying or refinancing.
Why does this matter?
A simple review can help you:
- understand your current payment
- clarify escrow changes
- identify questions or options
This doesn’t mean you have to make changes — it’s about understanding what you already have.
What to do instead:
- Schedule a no-pressure check-in
- Ask about your loan, payment structure, or rate
- Get clarity, even if you’re not planning changes
7. Not Asking Questions Because You Think You “Should Know This Stuff”
Escrow, taxes, insurance, and mortgages are complicated. Feeling unsure doesn’t mean you’re doing something wrong.
Why does this matter?
Small questions now can prevent big surprises later.
What to do instead:
Ask. That’s exactly what your local bank is here for.
A Simple End-of-Year Homeowner Checklist
Before the year wraps up, take a few minutes to:
- Open and review escrow letters
- Check homeowners insurance renewal notices
- Budget for potential January payment changes
- Review property tax information
- Gather tax documents
- Reach out if something doesn’t make sense
We’re Here When You Need Us
Winter in Wisconsin is hard enough — your home finances don’t have to be. At Farmers & Merchants State Bank, we’re proud to be a local bank with real people who take the time to explain things clearly and help homeowners feel confident, not overwhelmed.
If you have questions as the year ends, we’re here to help — no scripts, no pressure, just honest answers.
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