Why did my mortgage go up?
Mortgage interest rates have been on the rise recently, which means that your mortgage payment will also go up.
Usually, your mortgage payments would go up due to the following:
-An increase in your mortgage interest rate
-An increase in your homeowner’s insurance premiums
-An increase in your property taxes
-Skipped or Late payments
Adjusted Rate Mortgage (ARM)
If you have an Adjustable Rate Mortgage (ARM), your mortgage interest rate may have recently increased, which would cause your mortgage payments to go up. ARM works this way: your mortgage interest rate is fixed for a certain period, and then it adjusts to the current market rate.
Variable interest rates are usually lower than fixed interest rates, which is why many people choose ARMs. However, since your interest rate can adjust at any time, your monthly mortgage payments could also go up or down.
An escrow account is set up so that your property taxes and insurance premiums are paid on time, and you don’t have to worry about it.
Your mortgage lender will hold on to your escrow payments and then pay your property taxes and insurance premiums when they’re due.
If your property taxes or insurance premiums go up, your monthly mortgage payment will also go up to cover the increase.
If you’re behind on your mortgage payments, your lender may require you to pay a late premium. This late premium will be added to your mortgage balance and will increase the amount of your monthly mortgage payment.
If you’re having trouble making your mortgage payments, contact your lender as soon as possible to discuss your options.
There are many programs available that can help you keep your home and make your mortgage payments more affordable.
Don’t wait until you’re behind on your payments to contact your lender – they may be able to help you before you get to that point.
Mortgage Payment shock can happen to anyone, but there are ways to avoid it. Keep an eye on your mortgage interest rates and make sure you have enough money in your escrow account to cover any increases in taxes or insurance.
If you’re having trouble making your mortgage payments, contact your lender right away to discuss your options. There are many programs available that can help you keep your home and make your mortgage payments more affordable.
The Bottom Line
There are a few different reasons why your mortgage payment may have gone up.
It’s important to stay on top of your finances and understand what goes into your monthly mortgage payment so that you can budget accordingly.
If you have any questions regarding why your mortgage went up, be sure to ask your mortgage lender for more information.