How do mortgage payments go up if it’s a loan?
In: Economics
A lot of people (most?) pay their property tax and homeowner’s insurance premiums with their mortgage; the bank/mortgage company holds those amounts in escrow and pays your town and insurer when they come due. Both do these things pretty much only go up over time, so the lender periodically adjusts the amount of your monthly payment upward when they see there’s going to be an escrow shortfall.
Latest Answers