It’s true. Your monthly mortgage payment is subject to change. Perhaps you missed the fine print written on one of the millions of pages that you signed to fund your mortgage loan. However, in certain cases there are ways to combat your payment from going up, and in the best case scenarios to even make it go down. If these methods do not work, your best defense is always to have an emergency savings account for when unexpected debts come up. People who do this are cautious and behave with foresight.
Adjustable rate mortgages describe their meaning right in the name – adjustable rate. This means that the interest rate is allowed to fluctuate, thus the homeowner’s monthly mortgage payment can and most likely will change. If the interest rate under an adjustable rate mortgage is changing your monthly mortgage payment, there is no room for altering that situation without a refinance. However, this is not the only factor affecting a heightened mortgage payment.
Another factor capable of significantly increasing a borrower’s monthly mortgage payment is homeowner’s insurance. Homeowner’s insurance is required by the lender so that the investment is protected should anything happen to it. It is recommended that whether or not homeowner’s insurance annually. Different homeowner insurance companies place focus on different aspects of the home to reach conclusions about insurance premiums. Certain insurance providers will incentivize insured’s to save a hefty amount on premiums by combining their automobile and home insurance. The same goes for automobile and renter’s insurance. Contact insurance providers to confirm if they offer said discount. The automobile/home bundle is not the only discount that insurance provider’s offer. Compare notes with insurance providers for additional discounts. There is a plethora of them out there: make sure you are hopping on as many as you can.
If you choose not to shop around and are happy with the insurance provider that you currently have, consider increasing your deductible to lower premium rates. Increasing your deductible means that should some event negatively impact your home, you will have to pay more out of pocket to repair damages before the insurance company chips in. If this is the route that you choose to take, make sure that this deductible is realistic. Life in unpredictable, and you don’t want to face an enormous financial set back just so you could save an extra small amount of cash per month.
Lastly, property taxes can increase monthly mortgage payments. There is not much that you can do to tame the situation other than check with your county or city to confirm the rates. If your property value has decreased, you may receive a lower rate, but you must be sure that the value has decreased because if it has in fact increased to a higher price, your tax rate will increase as well.
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