Why did my monthly mortgage payment go up?

Short answer

A monthly payment can rise for several loan-specific reasons, including changes for taxes or homeowners insurance, an adjustable rate, the end of a temporary buydown, or a change in mortgage insurance. Check the itemized charges on your statement and ask the servicer if the reason is unclear.

Full explanation

Several features of a loan can change the amount due. Start with the itemized charges on the mortgage statement. If the reason is still unclear, contact the servicer.

The CFPB lists common causes. If you have an escrow account, the payment rises or falls when property taxes or homeowners-insurance premiums change. A temporary buydown can keep the payment lower for one to three years and then step it up. An adjustable-rate mortgage payment can change when the interest rate adjusts; some borrowers mistake an ARM or another adjustable feature for a fixed-rate loan. Interest-only or pay-option loans can rise when you must start paying principal. Private mortgage insurance can change, or the payment can fall if you cancel PMI. New servicer fees can also increase the amount due.

It is also possible the servicer made a mistake. The CFPB says to call first, ask for a corrected statement, and keep the date, the person's name, and a reference number. If the phone call does not fix it, send a written notice of error to the servicer's designated address. The exact reason depends on how your loan and payment are structured.

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