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The mortgage process

5 fast facts about your mortgage payment

By Robin Wetherbee

September 2015

To be the very best homeowner you can possibly be, there are a few things you should know about your monthly mortgage payment.

  1. Always pay it on time. Always. A late payment can mess up your credit for years.
  2. Your mortgage payment typically includes an amount toward your loan balance, also called the principal balance, and an amount to cover scheduled interest principal payment. If you have mortgage insurance, that will also be included. Your lender may offer the option to include a monthly amount toward your property taxes and your homeowners insurance.
  3. If you add a little extra to your payment each month to go toward your principal balance, you can reduce the amount of your mortgage payments and reduce the amount of interest you pay.
  4. Your lender may sell your loan. It won’t affect the amount of your mortgage payment, but it may affect whom you pay and where you send your check.
  5. Always pay your mortgage on time. Always. Always. Always.

Related to This

Jane Jackson •

Thank you, this was helpful.

Dianne Wright •

I wish I would of taken this class before know, I am locked into a closing on the house of my dream. No regrets however I really learned a lot. Thank You

Marco A Enriquez •

My family is ready

Rar •

We're excited.

Fort Home Buyers •

great , this is really helpful

Julio •

Very helpful thank you

Eleanor Harvey •

Excited

Teresa Smith-Keil •

Helpful thanks

Andrea Johnson •

This was very helpful

Alan Shively •

Even though I know most of this cuz I sold a couple homes it was still very educating to go back and remember some things I have forgotten

Andre Eken •

Very informative

Sandra Dyson •

Very helpful

REDELIA COLLIER •

This was very helpful.

Charlene Alexander •

Great information!

Leonardo Sorto •

Very Helpful

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Robin

Read more articles by Robin
Robin Wetherbee has been writing for MGIC about mortgage insurance and homeownership since 1989. She and her handsome husband reside in Milwaukee’s Bay View neighborhood. They share their freshly empty nest, which she calls her “Miracle on 34th Street” house (if you’ve seen the 1947 movie, you’ll know exactly what she means) with their big old black cat, Max Rayfield Gilhooly.
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