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A homeowner has a mortgage with a fixed interest rate. Under what circumstances would her payments change?

User AndrejH
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Final answer:

A homeowner's mortgage payments on a fixed-rate mortgage can change under certain circumstances, such as having an adjustable-rate mortgage or refinancing the mortgage.

Step-by-step explanation:

A homeowner will have fixed payments on a mortgage with a fixed interest rate. However, their payments may still change under certain circumstances:

  1. If the homeowner has an adjustable-rate mortgage, their payments can change when the interest rate changes due to market fluctuations.
  2. Refinancing the mortgage can also result in changes to the payment amount if the interest rate or loan term is modified.
  3. If there are changes in property taxes or mortgage insurance premiums, the total payment amount may increase or decrease accordingly.
User Dale Jefferson
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