Yes, your monthly payment can change for the following reasons:

•Escrow Analysis – At least once a year, your lender will analyze your escrow account, and adjust the portion of your monthly payment collected for real estate taxes, insurance, and other escrow items. Your new monthly payment amount shown on the analysis will typically be effective on the anniversary of your first payment due date.

•ARM Adjustments – If you have an adjustable rate loan, the interest rate and principal and interest (P & I) portion of your payment will change on a scheduled basis based on its index. To determine when your new payment will become effective, please refer to your loan agreement. If you have an escrow account, the escrow portion of your payment may change as well.

However, if you have a fixed rate Mortgage, the principal and interest will no change.

I do recommend that you make at least one extra payment a year to be applied towards the principal of the mortgage.


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