Blog
| Blog | Why Did My Mortgage Payment Go Up?

Why Did My Mortgage Payment Go Up?

mortgage payment

There are a number of reasons that a mortgage payment can go up.  If you are delinquent on payments, late fees are added to scheduled monthly payments. Your original mortgage may not have been a fixed rate mortgage. The most likely culprit, however, is a change in your escrow account. What is an escrow account? Basically, when you purchase a home you are able to have the lender receive a little more money then necessary to pay the mortgage and pool these funds for you to pay other bills associated with the property. This money builds over the months and is then distributed to pay real estate taxes, insurance or mortgage insurance when they come due. Lenders like these arrangements because they then get to feel secure in knowing the property taxes are paid and the property is insured. Some lenders require this type of account. If they do, certain regulations keep the lender in check with regard to how much they can legally hold. When your mortgage payment increases due to an escrow account change, technically the mortgage amount has not actually increased. Instead, the costs of your insurance or taxes has increased. Because of this, the amount the lender is allowed to hold in escrow is modified, almost always upward. The result is your overall mortgage payment goes up. If you have an issue where your mortgage payment has increased, the rules associated with mortgages are complex. Do not hesitate to contact the legal experts at Mooney & Associates to make sure your rights are properly protected.

Share Post

Facebook
Twitter
LinkedIn

Recent Post

Get The Representation You Need Today!

Secure Your Justice.
Contact Us Today

Related Blogs

Safety Tips for Driving This Winter

Safety Tips for Driving This Winter

Winter in Pennsylvania can be beautiful, but it also brings challenging weather conditions that can make driving hazardous. Snow, ice, and freezing temperatures increase the

Auto accident lawyer

The Auto Accident Claims Process

If you have recently been involved in an auto accident and are looking for some general guidance on the Claims Process, this article helps break