03/07/2023
A monthly mortgage payment, while paid in one sum, is often a combination of a few different fees. In many cases, your taxes and homeowners insurance payments will be part of your mortgage payment each month and will go into an escrow, or savings-like account, to be paid when the yearly payments come due. Another aspect of your mortgage payment may be the PMI. This is an additional fee, that depending on the type of mortgage you have, may be part of your payments. It is typically for those home buyers that purchased with a conventional loan, but had less than 20% for their down payment. Often the PMI "fee" is removed once that 20% mark has been reached. When purchasing a home with a mortgage, it's important to speak with your lender to ensure you know all the fees associated with your particular loan type.