A LOAN officer explained that a client should have been informed that his mortgage would increase before the house was finished being built.
The owners commented on a TikTok from the finance expert asking for help with the situation.
Camila (@vidacomcamille517) shared a video offering advice after the viewer said his mortgage had increased by 25%.
“It rose 25% in December without warning,” they wrote.
“We are struggling a lot right now.”
Camille apologized to the commentator and said he should have been notified of the increase.
read more about mortgage rates
“This should have been explained to you by the builder [or] by your creditor,” she said.
“If you used the builder’s lender, this can also have an adverse effect if you don’t fully understand how to negotiate with them.”
PAYMENT SHOCK
Fellow TikToker Matt Wheatley (@mjwhomes) also addressed the topic of rising mortgage rates.
“No one is teaching you these things,” he said in a tone video.
He talked about a Florida homeowner whose mortgage increased from $2,300 to $3,500.
He explained that a large increase like this was likely due to an insufficient deposit payment.
Fixed mortgage rates, which are expected to remain stable, can still change.
Because tax assessments typically happen annually, they can be applied retroactively, meaning homeowners may have to make late payments.
“You have this year and last year that you have to make up for,” Wheatley said.
Fortunately, he estimated the payments would drop to $2,800 after a year or so.
TRAPPED HERE
A first-time homeowner says she feels trapped in her home despite having a low mortgage.
Amanda and her husband feel bound by “golden handcuffs” to their three-bedroom home in Portland, Oregon.
They purchased their home in 2021 during the pandemic and locked in a 3.5% interest rate.
“It felt like a now or never moment,” Amanda said.
“Lower rates equal more purchasing power.”
Lien and Mortgage Increases Explained
What is a deposit? Why did my mortgage payment go up?
Escrow accounts are created to help homeowners cover insurance, property taxes, or other home-related expenses.
If you have a deposit, part of your monthly mortgage payment goes into the account.
The escrow management company then uses the money in the escrow account to pay taxes and insurance when those payments are due.
Essentially, escrow bundles these other charges with your monthly principal payments, making them easier to manage. The goal is to make homeowners less likely to default on payments.
If the government’s annual assessment of your home determines that property taxes will increase, escrow payments may also increase, meaning even those with fixed mortgage payments could end up shelling out more money every month.
But now the couple has a child and is thinking about moving back to Chicago, Illinois.
Due to the current mortgage rate of 7.57%, they are unable to purchase anything at this time.
“Our current situation is very good, but I don’t see a viable path from here,” Amanda said.
“I feel trapped here. There’s this fear of losing this really incredible mortgage rate that we have.”
Another homeowner said they felt like prisoners due to their low mortgage rate.
Property Brothers recently warned house hunters about the worst mistakes they can make when buying.
This story originally appeared on The-sun.com read the full story
