Why Is My Mortgage Lender Raising My VA Home Loan Payments?


Tim Lucas
Military VA Loan editor

Often we get questions from Veterans who need answers about their VA home loan. Here’s a question from Robert M., a visitor to our Facebook page:

Q: Dear Military VA Loan:

I am a Veteran who purchased a home last year and have my mortgage through a nationally known bank. I feel like they have raised my mortgage payments. How can I get a hold of someone to help me refinance and get a lower payment?

A:  Hi Robert,

Your lender should not be raising your payments if you have a fixed-rate loan. The idea of a fixed loan is that the principle and interest portion of your payment never increases. If your loan is an adjustable-rate mortgage, it’s a possibility that your payment may increase, but usually only after 3 to 5 years.

It is a possibility that your property taxes and homeowner’s insurance are rising. When your local jurisdiction raises your property taxes, or your homeowner’s insurance premiums go up, your lender will start collecting more from you each month to pay for these items. These costs are included with your VA home loan monthly payment. This is probably what’s going on.

Still, if you’d like to see if you can get a lower payment by refinancing. A mortgage loan officer can help you determine whether you could save money.

Check your VA home buying eligibility here (Jan 31st, 2023)