Legal Question in Real Estate Law in Louisiana

Mortgages

If someone has a fixed loan mortgage can the mortgage company hike the rates up several hundred dollars a month by claiming that the person with the loan doesn't have enough in escrow?


Asked on 6/22/06, 2:29 am

1 Answer from Attorneys
Robert Louque The Louque Law Firm, L.L.C.

Re: Mortgages

Yes, even though your interest rate is fixed, the costs of insurance and property taxes can go up or down from year to year. They are entitled to charge enough to cover the escrow costs for the year.

The interest rate is not being changed. They are just raising your monthly payment to cover the cost of insurance and property taxes. It is possible your payments can be lowered or raised again next year and every year after that.

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Answered on 6/22/06, 3:19 am


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