Existing Homeowners May be Facing Higher Payments
As a current homeowner, you may be basking in the consolation that you bought before the market got crazy with higher prices and interest rates. However, it doesn't mean that you may not be facing higher mortgage payments for next year. Most homeowners pay their taxes and insurance into an escrow account with their mortgage payment. The lender monitors the account to be sure there are enough funds available when the taxes and insurance are due. If there is a shortage, it could cause your payment to increase. In 2021, the national average increase in home prices was just under 20% but may have been considerably higher in some local markets. The increased value of homes doesn't just affect buyers, in can affect the assessed value of properties across the board resulting in their property taxes going up. Various taxing authorities, like state, city, school, and other special districts, can establish the rate they charge and exemptions that apply. In most sit