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Why Escrow Payments Change Over Time

One of the perks of becoming a homeowner is the landlord can’t suddenly jack up the rent. However, that doesn’t mean that mortgage payments can’t change over time.

Property taxes, homeowner’s insurance, and private mortgage insurance (PMI) is typically paid out of the homeowner’s escrow account. These expenses can fluctuate over the years, with home insurance premiums and property taxes often on the rise.

However, homeowners who may also eventually be able to get rid of their PMI when they reach 20% equity in their properties. This can lead to lower mortgage payments.

“[We must] make sure that we adjust your mortgage payments so that you are not running behind on your tax bill and also on your homeowner’s insurance,” said Miguel Mouriz, Vice President, Central Florida for New American Funding.

Miguel Mouriz NMLS #283155