Is your mortgage payment about to see an increase? Here are some tell-tale signs you should be on the look out for.
If you chose an adjustable-rate mortgage, then a fluctuating mortgage should come as no surprise. It’s the fixed-rate mortgage (FRM) that can catch you off guard. How can you predict a hike in payments with your FRM? And did you even know it could do that? Even though your FRM increase should vary wildly, it’s important to be informed so you can spot the signs and prepare financially for an increase.
Is Your Mortgage About to Go Up?
- Property Tax Increase
While a healthy real estate market is a sign of a great economy, it’s not so great for your wallet. An active housing market means that taxes will inevitably increase. If your home value increases because of market conditions, the property taxes will follow, and it will cost more to insure your home as well. If you see your neighbors selling their houses quickly or at a pretty high price tag, it might be a sign that taxes are on the rise. - Low Escrow Account Balance
Some choose to pay their property taxes and homeowners insurance as a part of their mortgage payment, instead of handling them on their own. These payments come from an escrow account. If there isn’t enough money in the escrow account to cover the taxes and insurance, your monthly payment will increase–you can then pay the difference in one lump sum, or spread it out over the next twelve months.
Proper mortgage lenders will work with and for you. For all of your home buying needs throughout the Solana Beach, California area, contact the professionals at Ranch & Coast Mortgage Group Inc.
