Why does my mortgage payment keep going up?

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If you’ve noticed that your mortgage payment keeps going up, you may be wondering why this is happening. Understanding the factors that contribute to an increase in mortgage payments is essential for homeowners to manage their finances effectively. In this article, we will explore some of the common reasons why mortgage payments can increase over time.

Adjustable Interest Rates

Adjustable interest rates: One of the primary reasons for an increase in mortgage payments is an adjustable interest rate. Some mortgage loans have a fixed interest rate for an initial period, typically 3, 5, 7, or 10 years. After this initial period, the interest rate may adjust periodically based on market conditions. If interest rates rise, your mortgage payment will increase accordingly. It is important to review the terms of your mortgage to understand when and how your interest rate may change.

Escrow Account Adjustments

Escrow account adjustments: Many homeowners have an escrow account set up by their mortgage lender to cover property taxes, homeowners insurance, and other related expenses. These costs can fluctuate over time, leading to adjustments in your mortgage payment. If property taxes or insurance premiums increase, your lender may need to adjust your monthly payment to ensure there are sufficient funds in the escrow account to cover these expenses.

Private Mortgage Insurance

Private Mortgage Insurance (PMI): If you made a down payment of less than 20% when purchasing your home, you are likely required to pay for PMI. PMI protects the lender in case of default. As you pay down your mortgage balance and build equity in your home, you may be eligible to have PMI removed. However, until that point, the cost of PMI will be included in your monthly mortgage payment. If the value of your home has increased significantly, you may consider refinancing to remove PMI and potentially lower your monthly payment.

Property Value and Taxes

Property value and taxes: The value of your property can impact your mortgage payment. If your home’s value increases, your property taxes may also increase. Property tax assessments are typically conducted periodically, and if the assessed value of your home goes up, your property taxes will likely follow suit. Higher property taxes will result in a higher monthly mortgage payment.

Homeowners Insurance

Homeowners insurance: The cost of homeowners insurance can change over time, leading to an increase in your mortgage payment. Insurance premiums can be influenced by factors such as the value of your home, the location, and the coverage you have. It is important to review your insurance policy regularly and shop around for the best rates to ensure you are getting the most competitive price.


In conclusion, there are several reasons why your mortgage payment may keep going up. Adjustable interest rates, escrow account adjustments, private mortgage insurance, property value and taxes, and homeowners insurance are all factors that can contribute to an increase in your monthly payment. It is crucial to review your mortgage terms, understand the potential for changes, and regularly assess your options to ensure you are managing your mortgage payments effectively.


– Bankrate.com
– Investopedia.com
– Consumerfinance.gov