Posted on: 14th Apr, 2007 02:51 am
New to mortgages. How is it that a thirty year fixed rate loan that is 1025 a month increases to $1864 a month?? This is a fixed rate, so don\'t understand how my mortgage is steadily increasing. In five years, it\'ll probably be close to $2200 a month for a simple loan of $146,000@5.85%. I do have taxes and insurance rolled into my loan. Can I just request the taxes and insurance be taken out of the loan?????
Welcome Harrican.
This is really very strange. I don't understand why your payments are going up. As you said, you have a fixed rate mortgage. Even then how come your payments increase? I mean there can be slight variation in the property taxes each year but then yours is quite a large amount of increase.
I don't think at this point of time, you can take out the taxes and insurance payments out of the loan. Still, you should talk to the lender. Your lender may allow you to take out the insurance and tax payments from the monthly payments. But then you still have to pay them each year on your own if not through the escrow account set up by the lender to pay off your tax and insurance payments.
Thanks.
This is really very strange. I don't understand why your payments are going up. As you said, you have a fixed rate mortgage. Even then how come your payments increase? I mean there can be slight variation in the property taxes each year but then yours is quite a large amount of increase.
I don't think at this point of time, you can take out the taxes and insurance payments out of the loan. Still, you should talk to the lender. Your lender may allow you to take out the insurance and tax payments from the monthly payments. But then you still have to pay them each year on your own if not through the escrow account set up by the lender to pay off your tax and insurance payments.
Thanks.
does your fixed rate mortgage has interest only payment option and you were paying just the interest amount?
I'm going to guess that either the home was new construction or the prior owner was over 65 years old. Am I right?
Yes Ken, I too get the feeling that the home is a newly constructed one as harrican says that he is new to mortgages.