LOS ANGELES, Feb. 21, 2013 /PRNewswire-iReach/ -- When you've invested in something as large as a home, the last thing you want is any type of surprise along the way – especially when it comes to money! If you've taken a spin through Realtypin.com's Mortgage Center, you might think that you know everything you need to about your mortgage. So, if your monthly mortgage payment ever goes up, you'll probably be shocked and confused! But before you get all upset, you need to get all of the facts. Here's what could be causing the price increase:
1. Your rate adjusted
That's right! Some people mistakenly think they have a fixed rate mortgage (often, because they enjoy that introductory "teaser" period where their rates stay low and stable) – and then are stunned to see their monthly payments go up. So, before you make an angry phone call to your lender, check the fine print. You may actually have an adjustable rate mortgage!
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2. Your property taxes may have gone up
In many cases, lenders require borrowers to pay their property taxes along with their mortgage payments every month. That way, the lender can pay the taxes, so that they're all taken care of – and the lender knows that the homeowner isn't going to default because of a missed tax payment!
However, if your property tax rate goes up, it will cause your monthly payment to go up. Your mortgage payment itself isn't rising, but the money you have to fork over to your lender every month is.
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3. Your homeowner's insurance rates may have gone up
In some cases, lenders have the same arrangement for homeowner's insurance premiums that they do for property taxes. They pay the insurance company themselves so that they know the homeowner will have coverage in case of a fire, tornado, or some other type of disaster. That way, the homeowner will be able to rebuild, instead of having to abandon the property and leave the lender holding the bag. So, if your insurance company decides to raise your rates, you'll have to hand more money over to your lender every month.
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4. You may be paying more fees
When in doubt, check the paperwork. It's not uncommon for lenders to send out updated paperwork that says you have to pay a new fee (or that an existing fee has suddenly become a little more expensive). If that's the case, it will make your monthly payments a little higher.
So, before you panic, go through that pile of mail on the counter. Odds are, it may contain the answer!
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