Why Did My Mortgage Go Up? A mortgage payment is one of the largest regular expenses for many homeowners. So when that amount goes up, it can be a shock. There are several reasons that can cause your monthly mortgage payment to go up, and being in the know about them can help ease the pain of a higher payment.

The most obvious reason your mortgage payment could go up is an increase in property taxes or homeowners’ insurance premiums. Your mortgage lender calculates your escrow payment each year by forecasting what you'll pay for property taxes and home insurance, then collects that money each month to cover those expenses when they come due. If those expenses go up, your escrow payments will also go up.

Another reason your mortgage payment might go up is because the interest rate went up. If you have an adjustable-rate mortgage, your interest rate can change over the life of the loan, and this will impact the total amount of money you pay each month toward principal and interest.

If the interest rate went up, it's likely because the Federal Reserve increased the federal funds rate to control inflation and slow down economic growth. That makes it more expensive for banks to lend money, and they pass that cost to their borrowers.

This can make buying a new car or taking out a credit card more expensive. It can also make your existing debt more expensive as the interest rates on those loans go up too.

How Many Mortgages Can You Have?

When investing in real estate, you may choose to finance your purchases with multiple mortgages. This can be a great way to build a large portfolio of properties while also enjoying a good return on your investments.

Using multiple mortgages is also an excellent way to get comfortable with financing property and establishing systems that will make it easier to manage your debt over time.

How many mortgages can you have can depend on various factors, but conventional guidelines suggest that you can finance up to 10 financed properties. This includes your primary residence and any homes that are owner-financed or have hard money business loans.

When determining how many properties you can afford, you’ll need to consider the front-end and back-end ratio of your mortgage payment and other monthly expenses like property taxes, homeowners’ insurance and HOA fees. Do you know How Many People Can Be On A Mortgage?

However, this limit may not be as high as you think if you work with the right private financiers. Alternative lending options allow you to purchase more properties than would be possible under the standard mortgage guidelines set by Fannie Mae.

Private financiers have more flexibility regarding mortgages for investment properties and are often willing to work with you if you’ve proven yourself a capable borrower. This can be an attractive option for new real estate investors who want to increase their buying power without putting themselves at risk of the limiting constraints imposed by traditional lenders.