06/03/2026
🏡 Here’s How to Shop Smarter as a First Time Home Buyer 👇🏼
Recently, I’ve been seeing a lot of videos on social media from homeowners who are shocked, frustrated and even emotionally distraught because their mortgage payment increased after closing.
The truth is, they’re often told that their mortgage payment is “fixed” and cannot change but what many lenders don’t fully explain is that while your principal and interest payment may be fixed, other parts of your housing payment can increase over time.
Your monthly mortgage payment is typically made up of:
Principal – The portion of your payment that goes toward paying down your loan balance.
Interest – The cost of borrowing the money.
Property Taxes – Taxes assessed by your local government.
Homeowners Insurance – Insurance that protects your home from covered losses.
Mortgage Insurance – May be required depending on the loan type and down payment amount.
Here’s the part many buyers don’t realize:
Your principal and interest payment won’t change if you have a fixed rate mortgage.
However, your property taxes and homeowners insurance premiums can increase, and they often do over time.
When that happens, your mortgage servicer may adjust your escrow payment, which means your total monthly payment can increase even though your loan’s interest rate never changed.
That’s why I try to encourage my buyers to shop based on a comfortable monthly payment…not the maximum amount they’re approved for.
Give yourself room in your budget for future increases, home maintenance, and life’s unexpected expenses.
The goal isn’t to buy the most house you can qualify for.
The goal is to buy a home you can comfortably afford long after closing
