Q & A
Your Mortgage Payment
What does my mortgage payment typically include?
A monthly mortgage payment usually includes four parts: principal, interest, taxes and insurance.
The mortgage calculator above includes principal and interest, and can include private mortgage insurance, property taxes and homeowners insurance.
What does principal mean?
The principal is the amount of your loan that borrow from your lender without interest included.
What tax is a part of my mortgage payment?
Taxes included in your payment refer to the property tax, which varies based on your location.
What is homeowners insurance?
Your homeowners insurance is called a homeowners insurance premium and you pay for a policy to protect your home, belongings and finances. Many times this premium is added to your monthly mortgage payment.
It is typical for a lender to require you to purchase homeowners insurance to get a mortgage from them, however the coverage included in the plan may vary by your location. There are certain factors, like areas prone to flooding, that may require additional coverage.