Why Did My “Fixed” Mortgage Payment Go Up? 🤔💸

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Dec 1, 2025
3 min read

Updated: Dec 30, 2025

You locked in a fixed interest rate when you bought your home—so why did your monthly mortgage payment suddenly increase? — You locked in a *fixed* interest rate when you bought your home—so why did your monthly mortgage payment suddenly increase?

You’re not alone! This is one of the most common questions we get from homeowners.

The truth is: your interest rate is fixed, but other parts of your mortgage payment can still change over time. Let’s break it down.

Why Your Mortgage Payment Can Increase (Even With a Fixed Rate)

Your monthly payment is made up of more than just principal and interest. It also includes taxes, insurance, and sometimes mortgage insurance.

Here’s what can cause an increase:

🏠 Property Taxes Rise

Your town or county may increase tax rates or reassess the value of your home. When taxes rise, your mortgage payment usually increases to keep up.

💰 Homeowners Insurance Goes Up

Insurance premiums change often sometimes due to inflation, claim activity, or updated coverage.

🌊 Flood or Hazard Insurance Adjustments

If your property is re-mapped into a flood zone or your insurer adjusts coverage, this can impact your payment.

🔻 PMI (Private Mortgage Insurance) Changes

Your PMI can adjust or even drop off based on your loan balance and home value.

📉 Escrow Account Shortages

If escrow didn’t collect enough last year to cover taxes or insurance, your lender may increase your monthly payment to make up the difference.

👉 So yes, your interest rate stays the same but your total monthly payment can still move up or down.

Escrow, Property Tax Bills & Insurance Invoices Explained 🧾🏡

Many homeowners get confused when they receive a property tax bill or an insurance invoice in the mail while also having an escrow account.

Clients often call us saying:

“I just received a $6,000 property tax invoice… do I have to pay this from my pocket?”

In most cases, the answer is NO — not if you have an escrow account.

Here’s what to do when you receive a tax or insurance bill:

Check your mortgage statement to confirm that you have an escrow account.
Call your loan servicer and ask if that specific bill will be paid from escrow.
Verify the correct amount and due date so the payment is made on time.
Still unsure? Send us your statement or bill — we’ll explain everything in simple terms.

How LJ Mortgage Team Inc. Can Help

At LJ Mortgage Team Inc., we’re here to make homeownership easier to understand.

We can:

✔ Review your mortgage statement & escrow analysis

✔ Break down where every dollar of your monthly payment goes

✔ Help you understand tax and insurance increases before they impact you

✔ Explore options like refinancing, removing PMI, or adjusting coverage

✔ Guide you in planning long-term homeownership costs

You don’t have to figure this out alone — we’re here to walk you through every step.

📲 Need a Mortgage Check-Up? Call or Text (516) 218-1297

Schedule a free mortgage check-up and homeownership review today. Let’s make sure you’re informed, prepared, and in the best possible position.

LJ Mortgage Team Inc.

Your Local Guide to Homeownership!

127-03 Rockaway Blvd South Ozone Park, NY 11420 (516) 218-1297

NMLS# 2120286Purchase & Refinance NYS Registered Mortgage Broker, NYS Dept. of Financial Services. Broker arranges mortgage loans with third-party providers. Mortgage Broker Only — Not a Mortgage Lender or Correspondent Lender. Licensed by the N.J. Department of Banking and Insurance. We do not make mortgage loan commitments or fund mortgage loans. NMLS Consumer Access: www.nmlsconsumeraccess.orgTerms and conditions apply.