25
Aug
By Mike Pfefferman
Mortgage Tips

What Happens to Your Mortgage When Property Taxes Are Reassessed?

A fixed-rate mortgage provides predictability because your interest rate and principal-and-interest payment remain consistent. However, that does not necessarily mean your total monthly housing payment will stay exactly the same. Property taxes can change over time, and when they do, homeowners who pay taxes through an escrow account may see their monthly mortgage payment change as well.

Why Property Taxes Are Reassessed
Local governments use property assessments to help determine how much homeowners owe in property taxes. Depending on where you live, reassessments may occur periodically, after a property is sold, following major improvements, or because of changes in local property values.
The rules vary considerably by location, which is why buyers should understand how assessments work in the area where they are purchasing.

What Happens When Taxes Increase
If your lender or loan servicer collects property taxes through escrow, a tax increase means more money will need to be collected each month to cover the higher annual bill.
Your servicer generally performs an escrow analysis to determine whether the amount currently being collected is sufficient. If it is not, your escrow portion may increase.

An Escrow Shortage Can Also Affect Your Payment
Sometimes a tax increase creates an escrow shortage because the account did not contain enough money to cover the new bill. Depending on your loan and servicer, you may have options for addressing that shortage, such as paying it separately or spreading the amount over future payments. Your regular escrow contribution may also be adjusted to reflect the new tax amount.

Plan for Changes Before You Buy
When evaluating affordability, do not assume the seller’s current property tax bill will necessarily become your future tax bill. Ask your real estate and mortgage professionals about property tax considerations in your area and include potential changes in your homeownership budget.

Review Your Escrow Statements
Your annual escrow analysis provides valuable information about taxes, insurance, account balances, and changes to your monthly payment. Reviewing it carefully can help you understand why an adjustment occurred.

A fixed interest rate can provide valuable stability, but property taxes remain a separate part of your housing expenses. Understanding how reassessments work can help you budget more accurately and avoid being caught off guard by a future payment change.

24
Aug
By Mike Pfefferman
Financial Reports

What’s Ahead For Mortgage Rates This Week – August 24th, 2026

The latest FOMC minutes reinforced the Federal Reserve’s continued focus on price stability, with policymakers voting to maintain the current federal funds rate for the time being. However, the path forward remains uncertain, particularly as persistent inflation continues to complicate the case for additional rate cuts. In fact, several policymakers have indicated greater concern about inflation and favored tighter monetary policy at the most recent meeting.

With the more recent departure of former Fed Chair Jerome Powell, there is a lot of uncertainty about where the Federal Reserve will move under the current administration. There is also a lot of speculation about further interest rate cuts, although such cuts may be difficult to justify given current inflation rates. Leading economic indicators have shown positive results, suggesting that the economy is growing, but many sectors are still hurting, with employment conditions weaker in some areas.

Leading Economic Indicators
The Conference Board Leading Economic Index (LEI) for the US increased by 0.2% in July 2026 to 99.5, after an upwardly revised decline of 0.1% in June. As a result, the LEI’s six-month growth rate turned positive, to an increase of 0.2% between January and July 2026, a sharp reversal from its 1.3% contraction over the previous six months.

Primary Mortgage Market Survey Index

  • 15-Year FRM rates saw a decrease of -0.01%, bringing the current rate to 5.95%.
  • 30-Year FRM rates saw a decrease of -0.02%, bringing the current rate to 6.65%.

MND Rate Index

  • 30-Year FHA rates saw an increase of 0.04%, with current rate at 6.33%.
  • 30-Year VA rates saw an increase of 0.04%, with current rate at 6.35%.

Jobless Claims
Initial Claims were reported to be 210,000 compared to the expected claims of 205,000. The previous week landed at 200,000.

What’s Ahead
PCE Index coming up this week as the leading inflation report for the Federal Reserve.

21
Aug
By Mike Pfefferman
Mortgage Tips

Financial Habits That Make Homeownership Less Stressful

Homeownership can be rewarding, but it also introduces expenses and responsibilities that are easy to underestimate. A few consistent financial habits can make those responsibilities feel far more manageable. The goal is not to predict every cost perfectly, but to create enough preparation and flexibility to handle routine bills and unexpected surprises with confidence.

Maintain a Dedicated Home Reserve

Create savings specifically for repairs, maintenance, insurance deductibles, and other property expenses. Keeping this money separate from everyday spending makes it easier to see what is available when the water heater fails or an urgent repair appears. Contributing a manageable amount each month can build a meaningful cushion over time.

Plan for Costs Beyond the Mortgage

Your monthly mortgage payment may not represent the full cost of owning the property. Utilities, homeowners association dues, landscaping, pest control, maintenance, taxes, and insurance changes can all affect your budget. Reviewing the complete housing expense helps you avoid committing too much of your income to the purchase.

Review Important Accounts Annually

Set aside time each year to review your mortgage statement, escrow analysis, insurance coverage, property tax notices, and household budget. This habit can help you catch payment changes, coverage gaps, or rising expenses before they become larger problems. It is also a good time to update financial goals and emergency savings targets.

Avoid Using Every Available Dollar

Closing with no savings left can make the first year of homeownership unnecessarily stressful. When possible, preserve funds for moving costs, immediate repairs, furnishings, and emergencies. Choosing a home with a comfortable payment may provide more long-term security than stretching to the maximum purchase price.

Use Automatic Systems Where Helpful

Automating mortgage payments, savings transfers, and recurring household bills can reduce the chance of missed deadlines and make financial planning easier. Calendar reminders for seasonal maintenance and annual policy reviews can also prevent important tasks from being forgotten. Simple systems create consistency without requiring you to rethink the same responsibilities every month.

Less stressful homeownership begins with realistic budgeting, steady savings, and regular financial reviews. You do not need a perfect plan for every possible expense. By creating strong habits and leaving room for the unexpected, you can protect your home while continuing to pursue the other financial goals that matter to you.