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Thought your fixed mortgage payment could never increase?
A fixed mortgage rate can stay the same, but the total monthly payment can still go up. This surprises a lot of homeowners.
At Dream Home Mortgage, we often hear from people who say, “My rate is fixed, so why did my payment increase?” In many cases, the answer is escrow. Property taxes, homeowners insurance, and escrow shortages are not always fixed. If those costs rise, the monthly payment can rise too.
This can happen even when the loan itself has not changed.
A few things homeowners should check first:
The best first step is to review the escrow analysis statement before making assumptions. It usually shows exactly what changed and why the payment increased.
We explained the common reasons here:
https://dreamhomemortgage.com/fixed-...eeps-going-up/
Hope this helps homeowners understand the bill before panic sets in.
At Dream Home Mortgage, we often hear from people who say, “My rate is fixed, so why did my payment increase?” In many cases, the answer is escrow. Property taxes, homeowners insurance, and escrow shortages are not always fixed. If those costs rise, the monthly payment can rise too.
This can happen even when the loan itself has not changed.
A few things homeowners should check first:
- Did property taxes increase after reassessment?
- Did homeowners insurance renew at a higher premium?
- Is there an escrow shortage from last year?
- Is the shortage being spread into monthly payments?
- Was there a temporary payment discount that expired?
The best first step is to review the escrow analysis statement before making assumptions. It usually shows exactly what changed and why the payment increased.
We explained the common reasons here:
https://dreamhomemortgage.com/fixed-...eeps-going-up/
Hope this helps homeowners understand the bill before panic sets in.
