How Payments On A Fixed Rate Mortgage Can Increase
Can Payments on a Fixed-Rate Mortgage Increase?
A fixed rate mortgage has a fixed term, fixed rate and is popular for its simplicity. The interest rate is fixed but the payment amount may change over time. This is because the payment amount includes interest and principal payment (which don’t change) along with taxes and insurance payments both of which may change.
If the value of your property increases, then so will your property tax. To reduce the impact of taxed make sure you have applied for all tax exemptions like homestead and senior citizens exemption. When you take out a mortgage you are required to also have homeowners insurance. The insurance should cover repairing and rebuilding your home should it be destroyed. Your insurance agent could raise your premium payments and that will lead to you paying higher payments.