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eyeofthequeentiger OP t1_iyda1le wrote

I just saw the one post of someone saying they got a letter in the mail about their mortgage increasing by $600 so I thought I’d ask! :)

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Werewolfdad t1_iyda8hf wrote

That was their property taxes and is independent of the mortgage

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eyeofthequeentiger OP t1_iydapr0 wrote

Thanks for letting me know, I’m newer to all of this so trying to learn as much info as I can to make the best decision for the future

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NoFilterNoLimits t1_iydb382 wrote

Most people have an escrow account with their mortgage. That escrow account adds to the monthly mortgage payment but then provides funds to pay property taxes & homeowners insurance. The cost of taxes and insurance might vary from year to year, so an annual analysis of the escrow account is done, snd may result in an overage or a shortage. This is typically regulated by state law. When people experience a change in their mortgage payment, it’s usually* because they had an escrow shortfall

*I say usually because it’s also possible to have an ARM mortgage and the interest rate changes based on the terms when the mortgage started

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ThunderDrop t1_iydb9ft wrote

I didn't read the other post, but it may be due to their property taxes and insurance price going up, which is happens and is inevitable.

Or it could be they got an adjustable rate mortgage while rates were crazy low and now that rates have come back up, their interest rate is rising. This doesn't happen with fixed rate mortgages, but the adjustable ones tend to have a lower initial rate and people just hope they will be in a position to refinance if the adjustable rate gets out of hand, though that depends on several factors and may involve paying several thousand in fees.

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