Fluctuations In Your “Fixed-rate” Mortgage | Why It Happens, What To Expect, And What You Can Do

Many of our clients call us a year or more after they buy, and they share the news that their mortgage payment has increased.

On the phone, they ask us why has their mortgage payment increased? Clients express their confusion because they believe we planned a fixed-rate mortgage for them.

We confirm and explain to them that their mortgage is a fixed-rate mortgage; however, their property taxes and homeowners insurance can and most probably increased as property values continue to appreciate. 

We then express how they don't need to worry about their principal and interest because this portion of the mortgage payment is indeed fixed.

We then express what options they have: 

• They can call the lender and pay for the escrow shortage if they accept their new higher monthly mortgage payment. 
• They can accept the lender's payment plan, which also results in a higher monthly mortgage payment. 

Once the escrow shortage is covered with either of these options, they can still expect a higher mortgage payment than they originally had simply because the taxes and insurance increased. 

The other option we express is to let us offer them a free refinance analysis that can outline whether or not refinancing makes sense. 

If the refinance makes sense, this can help lower their current interest rate and or reducing their current mortgage insurance premium. Usually, with this option, clients can lower the mortgage payment enough to where they financially feel comfortable again.

If you know of a homeowner who can benefit from watching this video, please share it with them and encourage them to reach out to us. I'm here to help you and them.

Thank you for taking the time to watch my video and make it a great day.

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My name is Edgar DeJesus, I am a local licensed mortgage broker happy to help you know how much of a down payment you need, (772) 444-6362.