Why Payment Amounts Change with a Fixed-Rate Mortgage

September 24, 2024

Fixed-rate mortgages add security and stability to your budgeting. Having a fixed-rate mortgage means that the sum of your principal and interest stays the same. But that's just part of your total payment.

Your total payment amount may rise or fall due to changes in your property taxes, insurance, and other factors. Most people pay their property taxes and homeowners insurance through an escrow account. With an escrow account, the cost of your property taxes and insurance is spread out in equal payments over a year, so that you don’t have to pay your entire bill at once. As your mortgage servicer, ServiSolutions regularly reviews your escrow to make sure you have the correct amount in your account to cover any changes that may have occurred. At that point, your monthly payment may need an adjustment.

We mail an "Annual Escrow Account Disclosure Statement" to every borrower, every year. It provides the details of any escrow payment adjustments that lead to a change in total payment amount.

As always, if you have questions, please feel free to email your name and property address to [email protected]. We'll be happy to give personal attention to your particular situation.