Can PITIA payments change each year with a fixed-rate mortgage?

In the context of a fixed-rate mortgage, the principal and interest payments remain constant over the life of the loan, which is a defining feature of fixed-rate mortgages. However, the overall PITIA payments—comprising principal, interest, taxes, insurance, and any applicable assessments—can indeed change each year.

Property taxes and homeowners insurance premiums can fluctuate, impacting the amount of tax and insurance payments included in the total monthly payment. For instance, if your property taxes are reassessed and the amount increases, the portion of your monthly payment allocated to taxes will also increase, leading to a higher total PITIA payment. Similarly, if there is a rise in insurance costs, that will also adjust the total monthly payment.

Understanding this distinction is important for homeowners, as they should be prepared for potential annual changes in their overall payments due to variations in taxes and insurance, even though the principal and interest portion remains stable.