Here’s what the law says about whether fixed-rate loan payments can change.
A question we receive all the time is: “Can a fixed-rate payment ever change during the life of the loan?”
In a fixed-rate loan, you have a fixed term such as 15 or 30 years until the loan is done, and you also have a fixed rate of interest. By law, the principal and interest portion of your fixed-rate loan can never change during the life of that loan. However, your total payment can change because taxes and insurance are often included in what’s called an escrow account. So if you have an escrow account and your taxes and insurance are paid through the mortgage, your payment may change because homeowners insurance and property taxes can fluctuate from year to year.
If you have questions about your fixed-rate payments or any other mortgage topic, call or email us. We would love to help you reach your real estate goals.