My Mortgage Payment Jumped Up Almost Double?

My Mortgage Payment Jumped Up Almost Double?

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This is a very commonly asked question. The reason is most likely due to the increase of the Real Estate Taxes and Homeowners Insurance premiums. Another factor could be dependent on the type of mortgage loan that you were placed into the last time that you refinanced or when the home was purchased.

There are two ways this can happen:

The first reason is most likely due to the Real Estate Taxes and/or Insurance premiums increasing due to local property values increasing, tax rate increases, insurance rates increasing and many other factors. This can be alleviated by sometimes shopping for a new insurance quote. Also reaching out to the local county office and finding out what the tax assessed value of your home is. If your home is valued higher than it should be, you could be paying more real estate taxes than you should be. Even if your mortgage payment has not increased, these are great ways to lower your mortgage payments.

The second reason could be based on the type of loan that you initially received. If you have an Adjustable Rate Mortgage, the rate could have adjusted which will cause the monthly payment to increase significantly. Adjustment periods for these types of mortgages can vary. It is advised that you should reach out to your current bank or lender to review the type of loan that you have if you are unsure. They should have these mortgage documents on hand such as the Mortgage Note, Closing Disclosure or HUD (depending on when it closed) and other closing paperwork.

Another loan type that can affect your monthly payment at once is a Balloon Mortgage. This type of mortgage will change at once when a period of time has been reached for the balance to be due all at once. Refinancing this type of mortgage can sometimes be difficult if there is not enough equity in the property. However, if this is the type of mortgage that you have, it is advised to try and refinance out of this as soon as you can.

How can I fix this?

Refinancing would be a great way to fix this from happening again. By refinancing you would be able to combine two mortgages, get out of an Adjustable Rate Mortgage, finish a Balloon Mortgage, get a lower interest rate, adjust the escrow, possibly decide not to escrow, get a new insurance quote, lower your tax assessed home value and potentially extending the mortgage term (you may pay it off early).


If you have any questions, please feel free to reach out to the HC team. If we cannot answer the question that you have, we will be able to find someone that can.


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