My Monthly Mortgage Payment Just Went Up. Here's Why Yours Might, Too

In the middle of the holiday season last year, my wife and I received a notice that gave us some sticker shock. The payment on our 30-year fixed-rate mortgage was increasing by $106 a month, jumping to more than $2,789. As homeowners, we're used to budgeting a set amount toward paying off our home loan each month. We didn't factor in the likelihood that our mortgage bill would increase. Mortgage payments can change yearly, especially if you pay property taxes or insurance through your mortgage company. There are other reasons why your monthly mortgage payment might go up, whether you have a fixed-rate or adjustable-rate home loan. Here's how to prepare, and how you might be able to lower your monthly amount. Read more: Mortgage Payments Are Just the Start. Here's What Homeownership Really Costs Escrow account shortages Principal and interest are the two biggest factors that make up a mortgage payment. Principal refers to the actual sum of money you borrowed, and interest is the ex ... Read full article.