If your monthly mortgage payment increased even though you have a fixed interest rate, an escrow adjustment may be responsible. Homeowners in Olathe, Overland Park, Lenexa, and other Johnson County communities sometimes experience changes in their mortgage payments because property taxes or homeowners insurance premiums have increased.
Many mortgage servicers collect money each month for an escrow account used to pay property taxes and homeowners insurance. When those costs increase beyond the amounts originally estimated, an escrow shortage can occur. Your lender or loan servicer may adjust future monthly payments to cover higher expenses and replenish the account.
Homeowners should carefully review their annual escrow analysis to understand which expenses changed. It may also be helpful to compare insurance quotes, review property tax information, and contact the mortgage servicer about available shortage repayment options. Even with a fixed-rate mortgage, total monthly housing expenses can change.
Brad Papa with Team Papa at Keller Williams helps Kansas City area buyers understand the importance of budgeting for the full cost of homeownership. Considering taxes, insurance, and maintenance alongside principal and interest can make long-term financial planning more realistic.
Brad Papa | Team Papa – Keller Williams
913-526-4985 | Brad@PapasInTheHouse.com
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