Q&A: Does Refinancing the house or filing bankruptcy make your mortgage payment go up?

Question by Dessi Love: Does Refinancing the house or filing bankruptcy make your mortgage payment go up?
My dad just recently seen a 20,000 increase to the house mortgage

Best answer:

Answer by dave11
Im not sure on the bankruptcy part but in realation to refinancing ur mortgage it depends who u refinance with, ur father could have been paying a rate of 5.3 and re financed with another company whos rates are 5.6 this would lead to a rise in his monthly repayments, however i find often when u re finance ur mortage u often reduce the repayemnt rather then increase,

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3 Responses to Q&A: Does Refinancing the house or filing bankruptcy make your mortgage payment go up?

  1. Clark Kent says:

    If you refinance it could increase or decrease the payment depending on whether you increased the debt, increased the length of the mortgage or increased the interest rate. The same thing would apply if you decreased these. Whether the payment goes up or down depends on which of these you increase or decrease.

    A payment could also go up if you previously had no escrow account and paid your own taxes instead of paying the equivalent amount to the mortgage company so they could pay it for you. If you previously paid $ 12000 tax each year, and escrow account would mean you pay $ 1000 per month to the mortgage company and don’t have to pay the $ 12000 out of your own pocket when the tax is due.

  2. chatsplas says:

    DEPENDS. It might.

    TALK to the bankruptcy attorney, don’t ask thousands of yahoos who don’t have any specific information and are thus unable to give correct answers. Generally the point of refinancing is to make the payments go down, but who knows what is going on there?

  3. soubriquet says:

    No, not necessarily. We’ve done both in the last 24 yrs. After a re-fi your paymnt should either go down or stay the same. Of course if you get money back against the equity in your home and re-fi for more than originaly purchaced than you owe more and sure, it will go up but only a little.
    As far as bankruptcy, everything was dissolved and it didn’t effect our house whatsoever. But, the reason his mortgage went up could be an insurance rate hike if it’s policy renewal time, or an expected homeowners tax increase and mortgage co.’s will intentionally over estimate the escrow amount needed to fulfill payment for taxes and ins. Also, there most likely was an increase in the appraisal value by the city/county tax assessor which he can dispute. But 20,000 sounds really absurd so maybe there is a mistake. It does happen.

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