economy
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.