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If your mortgage has a fixed interest rate, your monthly payments can still go up.

Mortgage payments include loan principal and interest, plus charges for homeowners insurance and property taxes. 

Insurance premiums and taxes are collected a little at a time to reduce the strain on homeowners and to ensure that the bills get paid.

A change in your property’s assessed value or the local tax rate can cause your taxes to rise. 

Your homeowners insurance premiums might change if you file a claim or modify your coverage.

If there’s not enough money in escrow to cover a bill, your lender will pay the difference, then adjust your monthly escrow payments moving forward.

You should be notified before your payments increase so you can adjust your budget accordingly.

Leave some room in your budget so you’ll be able to handle higher payments in the future. 

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