That "fixed-rate mortgage" isn't as fixed as you think. Here's why your payment can still skyrocket - and how to protect yourself.
In this post, we'll expose:
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The sneaky reasons mortgages increase
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How new builds play the tax game
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Why insurance is the silent budget killer
The Mortgage Increase Trap
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The Tax Bait-and-Switch
New construction often has artificially low initial taxes based on vacant land value. When the city reassesses your finished home? Brace for sticker shock. -
Insurance Creep
Home insurance rates are rising 10-15% annually in urban areas due to:-
Increased claims
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Climate risk
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Rising rebuild costs
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The Escrow Shortage Gamble
Lenders underestimate taxes/insurance, then hit you with a catch-up payment. Always review your escrow analysis.
How to Fight Back
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The Tax Appeal Trick
Challenge your assessment with comparable properties. Works best in years when values dip. -
Insurance Shopping
Bundle with auto insurance or increase your deductible. Just $1,000 more can slash premiums 25%. -
The Extra Payment Hack
Pay 1/12 extra each month to cushion escrow shortages.
New Build Warning Signs
Watch for these developer tricks:
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"Estimated" tax numbers
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Temporary "discounted" insurance rates
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Vague answers about future assessments
Always ask: "What were the taxes on the last completed unit in this development?"
Watch the Mortgage Reality Check
See these payment shocks explained:
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