MORTGAGE RATES
   MORTGAGE INFO
   FIND A LENDER
CALCULATORS
   LOAN CALCULATOR
   LOAN COMPARISON
   RENT VS. BUY
   BUYERS CASH REQUIRED
   SELLERS PROCEEDS
   ANNUAL PERCENTAGE RATE
   PAY DOWN OR INVEST
   REFINANCING
   FUTURE VALUE SPREAD
   DISCOUNTED CASH FLOW
   LOAN SPREAD
Bankruptcy Factors Affecting Your Mortgage Conventional Loans
Fixed Rate Mortgages Home Appraisals Insurance
Low Down Payments Paying Point For Lower Rates Refinancing Costs
Second Mortgage Speed Up The Mortgage Process Subprime Loans
VA / FHA Loans Your Total Mortgage Payment Your Credit And Mortgages

YOUR TOTAL MORTGAGE PAYMENT

Your Total Mortgage Payment

Your monthly mortgage payment typically is made up of four components: principal, interest, taxes and insurance, together known as PITI. The principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. The interest is the fee charged for borrowing money. You can determine the amount of principal and interest by using our Mortgage Payment Calculator.

The taxes are property taxes your community levies which are generally based on a percentage of the value of your home. The lender usually collects 1/12th of the yearly property tax bill each month. The lender collects taxes in advance and places the money in an escrow fund.

Lenders won't let you close on your home loan if you don't have home insurance to cover your home and your personal property against losses from fire, theft, bad weather and other causes. The insurance amount is collected and paid much like the taxes. Each month 1/12th of the insurance bill is collected and stored in an escrow account until the bill is due. Even if you pay cash for your home, it is a good idea to buy home insurance in the event your home is damaged or destroyed.

Principal and interest comprise the bulk of your monthly payments in a process called amortization, which reduces your debt over a fixed period of time. With amortization, your initial monthly payments are largely interest, and as the loan matures, a greater portion of your payment is allocated toward the principal.

Use Our Mortgage Calculator To Calculate Your Monthly Mortgage Payment

 contact  e-mail us  terms of use  privacy policy
© 2004 LizsHomes.com, all rights reserved