I received this call the other day and I thought I would help others with the same question. Most first time home buyers are surprised here in Oregon when in January they get a letter from their mortgage company that their mortgage payments are going up and every January I get the call asking why?

It is true, you did get a fixed rate on the loan for your home, but included in that payment is your insurance and taxes and the mortgage company estimates those for the next year and has raise your payments by the amount of the increase from the local tax assessor.

So don't panic that your loan officer pulled a fast one on you, but do expect to get this letter every year saying that your mortgage payments are going up. Your taxes will probably never go down, so in turn your mortgage company has to increase the amount you owe to pay the additional amount.

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739