3 Ways Fixed-Rate Loan Payments Can Rise

Q: I have a 30 year fixed rate mortgage, but at the beginning of this year, my monthly loan payment went up—how can my payment increase if I have a fixed-rate mortgage? Sarah, Washington, DC A: That’s a great question, Sarah. Although you have a fixed-rate mortgage, Sarah, which means that your interest rate can’t change, your monthly mortgage payment is normally comprised of other items that can change. I’m going to give you 3 Ways Your Fixed-Rate Mortgage Payments May Go Up: 1. A change in the escrow balance your bank charges you can affect your monthly payment. 2. A change in the cost of your property insurance can affect your loan payment if insurance is bundled into your […]

continue reading