Mortgage Payments

You’re probably curious why we’ve created an entire section about mortgage payments. However, since a mortgage payment is one of the major side effects of purchasing real estate with a home loan financing program, we thought it would be important to highlight a couple topics and related articles about mortgage payments that may impact your monthly budget.

Mortgage Payment Basics

Just in case your first mortgage payment comes due before you get your first payment coupon in the mail, there should actually be a temporary payment coupon included with your closing documents.

Your mortgage payment is generally due at the beginning of the month, and most lenders start assessing late fees on the 15th. It is extremely important to remain under 30 days late on a mortgage payment, especially within the first 8-12 months of closing on a new loan.

When you receive your first mortgage bill, there will be a few numbers that add up to your total payment:

Principal

This is the portion that goes towards paying down your balance. An Amortization Schedulewill break down the exact amount of each payment that is being applied to the principal and interest.

Interest

This is the portion that goes towards paying down your balance. An Amortization Schedulewill break down the exact amount of each payment that is being applied to the principal and interest.

Taxes

This is the portion that goes towards paying down your balance. An Amortization Schedulewill break down the exact amount of each payment that is being applied to the principal and interest.

Insurance

This is the portion that goes towards paying down your balance. An Amortization Schedulewill break down the exact amount of each payment that is being applied to the principal and interest.

Mortgage Insurance

This is the portion that goes towards paying down your balance. An Amortization Schedulewill break down the exact amount of each payment that is being applied to the principal and interest.

Frequently Asked Questions

What Is An Impound Or Escrow Account?

You’ve heard of the acronym PITI (Principle, Interest, Taxes and Insurance). The escrow account covers the T&I, and is included in the monthly payment.

Are Impound Accounts Required?

This is the portion that goes towards paying down your balance. An Amortization Schedulewill break down the exact amount of each payment that is being applied to the principal and interest.

If I refinance my existing loan, what happens to my impound account?

This is the portion that goes towards paying down your balance. An Amortization Schedulewill break down the exact amount of each payment that is being applied to the principal and interest.

Can I set up an Escrow account later?

This is the portion that goes towards paying down your balance. An Amortization Schedulewill break down the exact amount of each payment that is being applied to the principal and interest.