Articles on: Rates, costs & fees

What is included in my monthly loan payment?

Your payment will include principal and interest payments for the mortgage. You may also escrow property taxes, homeowner's insurance and, if applicable, mortgage insurance. This means that those items will be included in your total payment on top of the principal and interest. If you escrow, then property taxes and homeowner's insurance will be paid by your servicer directly to the tax authority and insurance company. Mortgage insurance typically must be escrowed if it's applicable to your loan.

Each monthly payment you make goes towards paying down your principal. The interest is the cost of borrowing the money. As you pay down the principal, the amount of interest you pay each month will decrease.

Updated on: 13/04/2023