My payment estimate changed? What causes that?

Why did my payment estimate change?

Your payment estimate changed and you want to understand what causes those shifts. Payment estimates can move for several reasons, and the timing depends on where you are in the loan process.

Interest rates commonly cause payment changes. Rates fluctuate daily based on market conditions, and your payment estimate reflects the current rate until you lock. Property taxes and homeowners insurance also affect your monthly payment—these costs get added to your principal and interest payment when you use an escrow account. The loan amount can shift too if your down payment changes or if the home appraises differently than expected.

Check your most recent Loan Estimate against earlier versions to see which line items changed. Look at Section A for the loan amount, Section B for the interest rate, and Section G for projected monthly payments including taxes and insurance.

You can ask the lender to walk you through each change and explain how the new numbers were calculated. If you haven't locked your rate yet, you can discuss rate lock options to prevent future rate-related changes. Share your questions about specific line items with the lender and they can break down what drove each adjustment.