Discover how property taxes can affect your mortgage payments.
Have you noticed an increase in your monthly mortgage payment recently? If so, you're not alone. Many homeowners are experiencing this, and the primary reason is often related to property tax changes. I'm here to shed light on this common issue.
The increase in your mortgage payment typically stems from a rise in your property taxes or the assessed value of your home. Mortgage companies use an escrow account to collect funds for property taxes and homeowners' insurance as part of your monthly payment. If the money in your escrow account falls short at the end of the year, the mortgage company will still pay the property tax bill on your behalf. However, they will then adjust your monthly payment to cover the shortfall.
Your monthly mortgage payment generally includes principal, interest, homeowner's insurance, and property taxes. While the principal and interest portion remains fixed, homeowners' insurance and property taxes can fluctuate, affecting your monthly payment.
"It's crucial to stay informed about your home's value and how it impacts your financial obligations."
If you receive a property tax statement indicating a higher assessed value for your home and you disagree with it, your first step should be to protest the assessment. Keep in mind, though, that as your home appreciates, it's normal for property taxes to increase accordingly. Options When Facing Payment Increases:
If a higher mortgage payment puts you in a financial bind, reach out to your mortgage company. Discuss options like refinancing, especially if current interest rates are lower than your existing rate. While refinancing might not always be possible, it's worth exploring.
It's crucial to stay informed about your home's value and how it impacts your financial obligations. If you're facing increased mortgage payments and need guidance or want to understand your home's current value, feel free to call or email me. I'm here to help you navigate these situations and provide advice on your real estate assets.