According to a recent survey, homeowners believe their mortgage payments have increased over the past year, despite the fact that most mortgages are fixed-rate loans that do not change. The survey showed that 26% of homeowners believed their mortgage payments had gone up, which is an unlikely scenario given that only 8% of homeowners have adjustable-rate mortgages that can change with interest rates.
However, there may be other factors contributing to this perception. Rising homeowner’s insurance premiums and property taxes may have led some individuals to consider their escrow payments as an increase in their overall housing costs. This confusion may have led to the high percentage of people reporting an increase in their mortgage payments, even though fixed-rate mortgages generally do not change.
The popularity of fixed-rate mortgages during the era of low interest rates has protected many homeowners from the effects of inflation. However, it is important for homeowners to understand that their mortgage payments are not subject to change and that any increases in housing-related expenses should be considered separately from mortgage payments. In reality, the actual number of homeowners experiencing a rise in mortgage payments is likely much lower than what was reported in the survey.