Can My Mortgage Payment Increase?
May 25, 2023
There are several reasons why a mortgage loan payment might increase. Some borrowers mistakenly assume their home loan payments will never go up, but depending on circumstances, the amount you owe each month may change depending on variables, including property taxes and homeowner’s association fees.
Mortgage Payment Changes: Adjustable Rate Mortgages
Your monthly mortgage payment amount will definitely change at some point if you applied for an Adjustable Rate Mortgage or ARM loan. This mortgage features an introductory rate, but once that introductory period ends your mortgage will have periodic adjustments based on the schedule you and the lender agree to.
Mortgage Payment Increases: Property Taxes
If your property taxes go up, and you use escrow to pay them, the amount you must pay into escrow may change over time. It pays to monitor your property taxes to learn whether or not you’ve had an increase over the last year.
Mortgage Payment Changes: Homeowner’s Insurance Premiums
Homeowner’s insurance is rightly thought of as part of your monthly mortgage obligation, and the equation is simple; no mortgage, no need for the insurance.
And insurance policies are subject to change. Could your rates increase under your current agreement? If you use escrow to pay this mortgage-related expense, you’ll need to reconsider the amount you pay into the account.
Mortgage Payment Changes: Mortgage Insurance
Depending on the term of the loan, the loan amount, and other variables, some FHA mortgages have mortgage insurance that is cancellable after 11 years. Your mortgage payment may go down after canceling your mortgage insurance.
Mortgage Payment Increases: New Fees
If your home loan payments seem higher, check your statement for new fees or contact your lender to see if you have been charged new fees.
Mortgage Payment Changes: Lender Error?
It is always possible that your financial institution made a mistake. If you suspect you have been charged in error, contact your loan officer and be sure to submit your complaint in writing.
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Mortgage Payment Changes: Adjustable Rate Mortgages
Your monthly mortgage payment amount will definitely change at some point if you applied for an Adjustable Rate Mortgage or ARM loan. This mortgage features an introductory rate, but once that introductory period ends your mortgage will have periodic adjustments based on the schedule you and the lender agree to.
Mortgage Payment Increases: Property Taxes
If your property taxes go up, and you use escrow to pay them, the amount you must pay into escrow may change over time. It pays to monitor your property taxes to learn whether or not you’ve had an increase over the last year.
Mortgage Payment Changes: Homeowner’s Insurance Premiums
Homeowner’s insurance is rightly thought of as part of your monthly mortgage obligation, and the equation is simple; no mortgage, no need for the insurance.
And insurance policies are subject to change. Could your rates increase under your current agreement? If you use escrow to pay this mortgage-related expense, you’ll need to reconsider the amount you pay into the account.
Mortgage Payment Changes: Mortgage Insurance
Depending on the term of the loan, the loan amount, and other variables, some FHA mortgages have mortgage insurance that is cancellable after 11 years. Your mortgage payment may go down after canceling your mortgage insurance.
Mortgage Payment Increases: New Fees
If your home loan payments seem higher, check your statement for new fees or contact your lender to see if you have been charged new fees.
Mortgage Payment Changes: Lender Error?
It is always possible that your financial institution made a mistake. If you suspect you have been charged in error, contact your loan officer and be sure to submit your complaint in writing.
------------------------------
RELATED VIDEOS:
What You Need to Know About the Appraisal Fee
The Appraisal is an Important Requirement
Build Your Dream Home With a One-Time Close Loan
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