What does my mortgage payment include?

For most homeowners, the monthly mortgage payments include three separate parts:

  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company

For loans that require mortgage insurance there will also be a monthly charge for that. The cost of mortgage insurance is dependent on a number of factors including loan program, credit score, LTV, loan amount and more.

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Statia “Stacey” Parks NMLS#56992   Shelly Jones NMLS#57012  Sarah Barker NMLS#2061283

Robert Jones NMLS#1266752   Richard Dickerson NMLS#2010396  James Shimp NMLS#2226476


Multiple Option Mortgage Services NMLS# 57052

1701 Herr Lane Suite 200, Louisville Ky 40222

 

Phone: 502-473-1817 Fax: 502-747-7080