Why Your Mortgage Payment Is Increasing in 2026 — Even If Your Rate Didn’t Change.

From Mark Thomas

As we head into 2026, I want to prepare Texas homeowners for something I see every year:
your mortgage payment can change even if your interest rate stays exactly the same.

This surprises people, especially fixed-rate borrowers, but there are several factors that shift behind the scenes. My goal with this year’s Mortgage Checkup is to help you understand why this happens, what you can do about it, and how to stay ahead before the new year hits.

Here’s what I walk every client through this time of year.

 

1. Property Taxes Are Resetting, And Rising Faster Than People Realize

In Texas, your county reassesses your home value every year. Even if you didn’t move or remodel, your assessed value may go up,  and when it does, your property taxes increase, which raises your escrow.

Because DFW continues to grow, I’m seeing tax assessments rise quickly, especially with the AI-driven valuation tools many counties now use. These automated systems often bump values faster than homeowners expect.

If your mortgage went up in 2025, property taxes were likely the reason. And for many, 2026 will bring another adjustment. 

 

2.  Insurance Companies Are Using New Risk Models (Including AI)

Homeowners insurance is becoming less predictable year to year. Many insurers now use advanced risk modeling, including AI and real-time data, to evaluate things like storm frequency, rebuilding costs, and regional risk. When those models show increased risk, premiums can rise quickly.

If your homeowners insurance premium goes up, and you pay insurance via escrow, your monthly mortgage payment will rise, even if your interest rate stays the same. In Texas, homeowners have recently seen double-digit insurance-rate increases (18–21% statewide in 2023–2024), and in some areas or with certain carriers the increases have been far larger. As a result, many Texans are facing significantly higher payments.

Because taxes, insurance, and even mortgage-insurance premiums all flow through your escrow account, any increase to one of these line items will raise your monthly payment, even when your interest rate never changes.

 

3. Escrow Rebalancing Happens Behind the Scenes

Even if your taxes or insurance didn’t change much, your servicer may still adjust your payment because of an escrow shortage or projected shortage. This isn’t a penalty — it’s simply the lender recalculating based on updated estimates.

Your escrow also covers more than taxes and insurance. It may include PMI or FHA mortgage-insurance premiums, depending on your loan. If any of these increase, your payment increases too.

What most homeowners don’t know is that you can request an off-schedule escrow analysis if the new payment seems too high. This is important if:

• You recently re-shopped insurance and lowered your premium
• Your property taxes were reduced
• The servicer used outdated estimates

Requesting an off-schedule review forces the servicer to rerun the numbers — and it can correct an unnecessary payment increase. If you’re unsure whether you should request one, reach out and I’ll walk you through it.

 

4. HOA Fees and Local Costs Continue to Increase

Texas growth brings increased community costs:

• Higher HOA fees
• More community maintenance
• Infrastructure assessments
• Local service increases

These don’t affect your interest rate, but they do affect your overall cost of homeownership, and they can add up faster than people expect.

 

Why I Went to Washington, D.C., And Why Advocacy Matters in 2026

After spending the last few years helping homeowners navigate rising costs and confusion, I realized education wasn’t enough — the system itself needed improvement.

So I went to Washington, D.C. to meet with national mortgage-advocacy leaders and members of Congress. Our group is responsible for passing major consumer protections, including:

✔ The Trigger Lead Ban
Before this ban, applying for a mortgage meant your personal data was sold instantly — leading to dozens of unwanted calls. That practice is now illegal.

✔ Pushing for clearer disclosures and more transparency
Homeowners deserve to understand their costs without digging through fine print.

✔ Advocating for fair insurance standards, especially in states like Texas
Texas is a high-risk market. We’re pushing for more predictable, transparent pricing.

One of the resources I reviewed while in D.C. was the Broker Action Coalition’s brief on Ending Unfair FHA Premiums, showing how lifetime FHA mortgage-insurance premiums cost the average FHA homeowner over $2,100 a year. It’s a clear example of the outdated policies we’re working to fix, and I’ll link it below for anyone who wants to read it.

I don’t just talk about what’s happening in the industry, I actively participate in shaping it. And I do it on behalf of my clients and Texas homeowners

 

What You Should Do Before 2026 Hits: My Annual Mortgage Checkup

I walk clients through a full mortgage checkup so they know exactly where they stand heading into the new year. Here are the key items I recommend reviewing before January, it’s the same checklist I use in my own Annual Mortgage Checkup:

1. Look at where your loan is today.
   Review your basic loan details. things like your rate, term, monthly payment, and remaining balance. It’s a quick way to make sure everything still aligns with your financial goals.

 

1. Take stock of what changed this year.
   Think about any cost increases you noticed in 2025, especially around taxes, insurance, or escrow adjustments. Even small shifts in these areas can add up and directly affect your monthly payment.

 

1. Check in on your financial picture.
   Consider anything else that may impact your mortgage next year, such as improvements in your credit score, changes in your plans, or whether current market conditions might make a refinance worth exploring.
2. Decide whether it’s time for a deeper review.
   If several things changed this year, or if your payment increased and you’re not sure why, it may be a good time for a full mortgage review. My Annual Mortgage Checkup is designed to help homeowners organize these details and evaluate their options clearly.

I’ll link the full Annual Mortgage Checkup, you can download the checklist here and walk through each step before the new year.

 

Take Action: Email Your Congressional Representative in 30 Seconds

If you want to support the efforts that protect homeowners, including transparency, affordability, and privacy reforms, you can take 30 seconds and email your representative.

→ Advocacy Link Here
Your voice matters, and this effort truly has an impact. It also supports the advocacy group pushing the very reforms I advocated for in D.C.

Final Thoughts

Your interest rate might be fixed, but your payment is not.

My goal is to help you understand why changes happen, what you can control, and what needs to be addressed at a national level. Whether it’s educating homeowners, reviewing your mortgage, or advocating on Capitol Hill, I’m committed to helping Texans stay informed and protected.

If you want clarity before the new year, download my Annual Mortgage Checkup and get a full snapshot of your taxes, insurance, escrow, and equity.

And if you’d prefer to walk through it together, you can book a quick call through my Linktree, I’m happy to help you make sense of any changes and plan your next steps with confidence.

#TexasHomeowners #MortgageAdvice #PropertyTax #DFW #Refinance