Introduction: Why Is My Mortgage Payment So High All of a Sudden?
Many Florida homeowners are seeing their monthly mortgage payments rise and wondering what changed. The interest rate hasn’t moved. The loan term is the same. So what’s the cause? For many, the answer lies in their property tax bill—and more specifically, in a PACE (Property Assessed Clean Energy) lien.
Programs like Ygrene, Renew Financial, FortiFi, and Home Run Financing offer financing for solar panels, impact windows, and other energy-efficient upgrades. But instead of functioning like a normal loan, they add the repayment to your tax bill, which then affects your escrow account—and ultimately, your monthly mortgage.
If you’re feeling overwhelmed, I want you to know you’re not alone—and there is a solution. Let’s explore how these programs affect your finances and what you can do to cure the problem.
PACE Loans Raise Your Property Taxes—and That Impacts Your Monthly Escrow
When you accept PACE financing, you’re not getting a standard home improvement loan. The amount borrowed is repaid through your annual property tax bill, often over 10, 15, or even 30 years. This added tax obligation can significantly increase your property tax total.
Since most homeowners pay property taxes through their mortgage escrow, your lender will raise your monthly payment to cover the increased amount. You might go from paying $1,600 a month to $1,900—or more—without warning.
Unexpected Monthly Payment Increases Can Disrupt Your Budget
PACE providers often promote “no upfront cost” and “low monthly payments,” but they usually don’t explain how it directly affects your escrow and total housing expenses. Some even offer a deferred payment for the first year—so when the new tax year rolls around, many homeowners are caught completely off guard.
Even if your base mortgage stays the same, the higher escrow makes the monthly cost feel unmanageable. In worst-case scenarios, people fall behind on payments or face foreclosure risk—simply because they didn’t expect the financial pressure.
Why You Can’t Easily Refinance or Sell
Another frustrating aspect of PACE financing is that it makes refinancing difficult. Most mortgage lenders refuse to refinance homes with PACE liens. The lien attaches to the property, not the person—so if you try to sell your home, the buyer either has to take over the lien or you’ll be forced to pay it off at closing.
Buyers usually aren’t willing to assume a lien that increases their tax bill, and many don’t qualify for a mortgage if one is present. This dramatically shrinks your pool of potential buyers and can delay—or even prevent—your home from selling.
So What Can You Do to Fix It?
If your monthly mortgage is too high due to PACE, here are your main options:
- Pay off the lien: Contact the provider and request a payoff amount. This clears the lien and brings your taxes (and escrow) back to normal, but it may not be financially feasible for everyone.
- Request reassessment: In some counties, you can contest your property taxes or work with the PACE provider to restructure your payment terms.
- Sell the home and use proceeds to clear the lien: This is one of the most effective strategies if you have equity and want to reduce stress.
- Work with a knowledgeable realtor (like me) to navigate the process: I know how to position your home, handle buyers, and make sure the transaction is smooth—even with a PACE lien in place.
How I Help Florida Homeowners Move On from PACE Problems
I’ve worked with sellers throughout South Florida who faced the same challenges you’re going through now. Whether your lien is from Ygrene, Renew Financial, Home Run Financing, or FortiFi, I can help you:
- Understand your payoff options
- List and market your home the right way
- Connect with cash buyers who are familiar with PACE liens
- Structure your sale to reduce financial pressure and close smoothly
Let me help you get the highest value possible for your home—without the stress of rising payments or hidden liens dragging you down.
Conclusion: You Don’t Have to Stay Stuck with a PACE Problem
A PACE lien can complicate your monthly budget and make it harder to move forward. But you don’t have to face it alone. With the right guidance, you can regain control, reduce your monthly costs, and sell your home without the added stress.
Visit www.michelstephaneleys.com or call 786-721-2381 today. Let’s talk about how to solve your PACE issue and get you back on track—quickly and confidently.
