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Hi, I'm Ella Gurfinkel, your host of the AskElla Show and senior loan officer at Fairway Independent Mortgage. On my podcast, I cut through the noise to bring you honest conversations about real estate, mortgages, and financial planning.
I interview industry experts to tackle everything from homebuying basics to complex topics like reverse mortgages, trusts, and market trends. With decades of experience, I'm passionate about dispelling myths and providing clear, actionable advice.
Whether you're buying your first home, refinancing, or planning for retirement, I'm here to help you make informed decisions. Join me for straightforward talk about real estate and beyond!
Do not get screwed. Dear Horton payment shock scam every home buyer must know about. You know what makes my blood boil? When builders and lenders deliberately screw over home buyers. And that's exactly what's happening right now with Nero Horton and their captive lender DHI Mortgage. Listen to this and I want you to sit down for this one. Families are seeing their mortgage payments jump from $21.64 a month to over $3,100 a month all across the country. That's almost $1,000 more per month. And it's not an accident, folks. It's a scheme. Hi there. I am Ella Gerfinkle, senior loan officer with 30 years of experience and over 2,000 families served. And today, I am pissed off.
So, here is what's allegedly happening, and I'm going to break this down for you because the media isn't telling you the whole story, and frankly, they never do. Dear Horton, one of the biggest home builders in America, they closed 84,863
homes in 2025. That's massive scale people. And 81% of those buyers use DHI mortgage, their in-house lender. Now, here is why 81% of their buyers use DHI mortgage in the first place. because you're forced into using DHI mortgage when you buy a home from Dr. Horton if you want to get them to pay for your closing costs. If you're planning to use your lender, they're not going to pay a dime. Unless, of course, DHI mortgage is not able to do the loan. So, there is part one of the scam first and foremost. Now, here is part two and here is the main scam. And yes, I am calling it a scam because if a walks like a duck, quacks like a duck, it's a duck. They're giving you artificially low monthly payment quotes by using fake property tax estimates, not estimates that are a little off. I'm talking about estimates that are up to 80% lower than what you'll actually pay. So, let me give you real numbers from the lawsuit that was just filed. One family was quoted $613 per year in property taxes. Sounds reasonable, right? Wrong. 9 months later, they got hit with a 5,700 property tax bill. That's almost 10 times higher than what they were told initially. So, now let me explain exactly how they're screwing you over because understanding this could save you thousands. When you buy a new construction home, the land hasn't been assessed with a house on it yet. So, what DHI mortgage allegedly does is use the tax assessment for the empty land, not the land with your brand new 3,4 or $500,000 house sitting on it. So, think about it. What's worth more, an empty lot or that same lot with a beautiful new home? Obviously, the home, right? but they're calculating your escro payments based on the AMT lot taxes. Here's what happens next, and this is where it gets really, really ugly. Step one, you close on your home thinking your payment is, let's say, 2,600 a month. Step two, the county reassesses your property with the actual house on it. Surprise, your taxes are now $6,000 higher per year. Step three, your loan gets sold to a new serer. And this happens all the time, people. So, step four, the new serer does an escro analysis and discovers your escrow account is thousands of dollars short. Step five, boom, payment shock. Your $2,600 a month's payment is now $3,400 and you're stuck. Let me tell you about some real families this happened to, because these aren't madeup numbers. These are from actual federal lawsuits filed in Florida and Nevada. Frankie Santiago promised monthly payment of $21.64 a month later increased to 3136 that is a $971 increase per month. People the Neurona family promised 2602 payment later hit was 3439 that is an 841 monthly increase. Their escrow account was negative $5,5597 and they got slammed with a $7255 tax bill that the serer had to pay. Another family I read about payment went from 2878 to 3968. These aren't isolated incidents. It is a pattern, a deliberate pattern designed to get you to qualify for more house than you can actually afford. Now, let me throw in one more example of an actual client I personally was working with who bought new construction in Portland, Oregon. Exactly the same thing. They closed on the assessed value of the land. A year later, they're calling me and I didn't do the loan because the builder stole the client from me. They're calling me asking me for help because their payment has gone up by $500 or $600 per month because the escro account was short. And there was absolutely nothing I could do. And that was heartbreaking. Now, you might be thinking, Ella, why should I care? I'm not buying from Dr. Horton. H wrong thinking. Here is why this affects everyone. First, Dear Horton is huge. We're talking about potentially 68,000 plus families affected just in 2025 alone. That's a lot of people getting screwed. Second, if Dr. Horton is doing this, you better believe other builders are too. This is an industry-wide problem waiting to explode. Third, and this is the big one, this shows you exactly how lenders can manipulate your monthly payment to get you to buy more house than you can afford. And that, my friends, is how people lose their homes. Remember 2008? Yeah, that started with people getting loans they couldn't actually afford. Different mechanism, same result. So, how do you protect yourself? I'm going to give you my five-step bulletproof strategy and I want you to take notes because this could save your financial life. Step one, demand the real tax estimate in writing. Don't accept taxes will be reassessed later. That is complete [ __ ] Ask them, "What are the projected annual property taxes once this home is assessed as improved property?" Use this phrase verbatim. Make them give you comps from the same subdivision on the homes that have been completed the year before. Step two, do the three number check. Every time you get a payment quote, write down three numbers. the monthly PITI they're quoting you, the annual taxes they're using in that quote, the annual taxes for a comparable finished home nearby. If there is a big gap between numbers two and three, run. Step three, stress test that payment. Before you sign anything, calculate what your payment would be with realistic taxes. Use online calculators. If the realistic payment is 500 or more higher than what they're quoting, you need to reconsider. Step four, watch for red flag phrases. If you hear taxes will be reassessed later, or it's just an estimate, or your payment may increase, these are warning signs. Yes, payments can increase, but we're talking about increases that can destroy your budget. Step five, audit your escrow immediately when your loan transfers. The minute your loan gets sold to a new serer, and it will happen, call them immediately. Ask when is my escrow analysis scheduled and do you expect any shortfall collection? As a matter of fact, let me give you a tip. If you know when the property taxes are paid in your area, expect the new escro analysis to be done within about 2 months after your property taxes are paid out. So, don't wait for surprises. Be proactive. Look, I've been in this business for 30 years. I've seen every trick in the book. And let me tell you something, the big box lenders, the captive lenders, they don't give a damn about you once you close. You know why I'm making this video? Because I'm sick and tired of seeing families get screwed over and over by these schems. You work hard for your money. You deserve honest numbers from day one. This is exactly why I tell people, don't go to your bank for a mortgage if you make less than 250,000 a year. You're just a number to them. They don't specialize in mortgages like I do. They're order takers, not problem solvers. And frankly, same thing applies to the builder's lenders. They get enough business coming in through the door that they don't give a damn whether you close or not, whether you're happy after you close, and whether your payment goes up by a ton a year later. When you work with a professional like me, I'm going to give you the real numbers from day one. No surprises, no payment shock, no [ __ ] So, here's what I want you to do right now. If you're thinking about buying a home, especially new construction, reach out to me. The consultation free. I'll talk you through the real numbers, not the fake ones designed to separate you from your money. If you already bought from Dear Horton or any builder and you're experiencing payment shock, call me. There might be legal options available, although I'm not an attorney. And if this video helped you avoid getting screwed, do me a favor, share it, please, because somewhere out there, there is a family about to sign papers based on fake numbers. And they need to see this. Remember, the best time to buy a house was 10 years ago. The second best time, today. But only if you're doing it with your eyes wide open and the real numbers in front of you. I'm Ella Gerinkle. I'll see you in the next one.