For many homeowners, rising monthly mortgage payments can feel confusing especially if you have a fixed-rate loan. After all, “fixed” should mean your payment stays the same… right? Not exactly.

Even with a fixed-rate mortgage, your principal and interest stay the same, but your escrow payment can go up. And lately, across Louisiana and the rest of the country, taxes and insurance rates have been the #1 reason mortgage payments are increasing.

Let’s break it down in simple terms and talk about what you can do to help keep those costs in check…

 

 

Why Your Mortgage Payment Can Rise Even With a Fixed Rate

 

Property Taxes Are Increasing: Local governments adjust property tax values regularly. When your taxes go up, your escrow account has to collect more — which raises your monthly payment.

 

Home Insurance Premiums Have Skyrocketed: This has been especially noticeable in Southern Louisiana, where hurricanes, flooding, and rising rebuilding costs have pushed insurance companies to raise premiums significantly.

 

While you can’t stop taxes or insurance rates from rising, you do have more options than you may think.

 

Shop Around for Insurance Every 12 Months

Prices change constantly, and companies run new promotions and adjust risk models all the time.

 

Ask About Higher Deductible Options

A higher deductible can reduce your premium. This works best for homeowners with a solid emergency fund, newer roofs, and lower risk factors. Just make sure the deductible is still something you can afford in an emergency.

 

Make Improvements That Lower Your Risk

Many insurance companies offer discounts for things like new roofs, storm shutters, security systems etc. These upgrades can save you hundreds each year and make your home safer.

 

Double-Check Your Property Tax Assessment & Escrow Account

Mistakes happen, so review both to make sure the info is accurate and a mistake isn’t costing you more money.

 

Save in Advance for Escrow Adjustments

Not the most fun tip, but extremely helpful. Setting aside a small amount monthly (like $25–$75) gives you a cushion if your escrow shortage comes in higher than expected.

 

Consider Refinancing If Rates Drop

While refinancing won’t reduce taxes or insurance, it can lower principal/interest enough to offset rising escrow costs.

Rising mortgage payments can feel frustrating, but you’re not powerless. Awareness and action now can prevent big surprises later.

If you ever need help breaking down your escrow analysis, exploring options, or connecting with trusted insurance pros, my team and I here to help guide you every step of the way.