Learn how your fixed mortgage rates may increase.
When looking for a mortgage, it’s important that you consider all the options. Each type of mortgage has its pros and cons. An adjustable mortgage fluctuates with interest rates, while a fixed mortgage generally locks in a set rate. However, just because your interest rate is fixed, your monthly payments can still fluctuate. Check out what you need to know about your fixed mortgage rate increases, and learn when your rates may increase.
All About Fixed Rate Increases.
It may come as a surprise, but your fixed rate mortgage can change over time. While changes in your fixed mortgage rates may not be dramatic, they do occur every once in a while. There are various reasons as to why your rates may change based on external factors.
Reasons Why They Spike.
- Calculation Error. Your lender is human, and sometimes they make mistakes. When it comes to calculating your monthly payment, sometimes your lender makes an incorrect calculation. If done incorrectly, be aware that your monthly payment will change.
- Escrow Account Balance. When it comes to your home finances, you may decide that you want to open an escrow account to help cover the taxes and fees associated with your home. However, if your funds in your escrow account dip too low, then you can expect to see an increase in your mortgage payments.
When it comes to buying a home and choosing your mortgage rate, be prepared for fixed rate monthly payment increases. Be ready for the whole home buying process. Get the professional help that you need to help get you through the escrow process. Dedicated service paired with top-tier escrow services are a must when closing an escrow deal. Contact Brighton Escrow for assistance! Our Hermosa Beach, CA team, is committed to helping you make the most of your escrow process.