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Trulia Phoen…, Home Buyer in Phoenix, AZ

What is included in a monthly mortgage payment?

Asked by Trulia Phoenix, Phoenix, AZ Mon Apr 1, 2013

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Manuel.Amaya’s answer
Other replies have good answers. Your monthly mortgage payment, depending on which type of program you aquire can include many things,i.e; principle and interest- is the most common if your loan is fully amortized. If you pay interest only, it would be the interest only. Your mortgage note and your truth and lending disclosure will have a breakdown of this for you. Other items that can be included in your payment would be taxes and your insurance. Your lender will have a seperate account set aside to accumilate the funds to pay on you behalf when the time comes. Mortgage Insurance or MI can also be in included.

One more additional item that may be included and can be the most important depending on your personal preference is a type of insurance that covers you incase of death or disability. Many people aquire this after the loan is done. Some Banks may have this service so please ask if it can be included and get a quote. This might make a difference in that unfortunate unknown of a death of a partner or spouse, God forbid.

Your have a valid question and I hope this helps. If you are looking for a refinance or to purchase a home, e-mail me at Manuel.Amaya@BBVACompass.com. I would love to help you in any way I can.

Manuel Amaya
0 votes Thank Flag Link Tue Apr 2, 2013
A traditional loan included PITI - Principle Interest Taxes and Insurance, and if the loan to value is more than 80%, a mortgage insurance premium is added to the monthly payment as well.
Interest only loans are available as well as seller financing and agreements of sale with their own customize terms.

Your FICO score can influence the terms of the mortgage agreement and affect the monthly mortgage payment too.

For current rates and calculator for amortization of mortgages go to the web reference attached.
Web Reference: http://www.bankrate.com
0 votes Thank Flag Link Mon Apr 1, 2013
your mortgage payment is broken down as follows: the 'piti' payment. 'p' for principal; 'i' for interest; 't' for taxes and 'i' for insurance. the principal and interest is the loan amount and the accrued interest. the taxes & insurance is the escrow. each month you pay your mortgage/ piti payment, the 'ti' portion of your payment goes into an escrow account, and from this escrow account the insurance and property taxes get paid.
0 votes Thank Flag Link Mon Apr 1, 2013
That depends on what type of mortgage it is. It could be just interest; principal and interest or principal, interest, tax and insurance. If you ever find one with just principal, please let me know because I want one of those.
0 votes Thank Flag Link Mon Apr 1, 2013
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