Why your 'fixed' mortgage payment keeps going up
Rising property taxes and surging homeowners insurance costs are pushing up the amount that homeowners must pay monthly alongside their mortgage.
TL;DR
- About 65% of escrow accounts are projected to be short this year due to rising homeowners insurance and property taxes.
- The estimated average shortage is $2,157, which could increase monthly payments by approximately $180.
- Homeowners insurance costs have risen by 46% since 2021, reaching an average projected cost of $3,057 by the end of 2026.
- Property taxes have increased by 27.4% since 2019, with home prices jumping 51.6% during the same period.
- Homeowners can explore options like paying the shortfall upfront, shopping for cheaper insurance, or appealing property tax assessments.