Why Did My Mortgage Go Up?
Why Did My Mortgage Go Up ? A mortgage payment is one of the largest regular expenses for many homeowners. So when that amount goes up, it can be a shock. There are several reasons that can cause your monthly mortgage payment to go up, and being in the know about them can help ease the pain of a higher payment. The most obvious reason your mortgage payment could go up is an increase in property taxes or homeowners’ insurance premiums. Your mortgage lender calculates your escrow payment each year by forecasting what you'll pay for property taxes and home insurance, then collects that money each month to cover those expenses when they come due. If those expenses go up, your escrow payments will also go up. Another reason your mortgage payment might go up is because the interest rate went up. If you have an adjustable-rate mortgage, your interest rate can change over the life of the loan, and this will impact the total amount of money you pay each month toward principal and interest. ...