First Time Home Buyer, Investment Property, Refinance

What’s On My Monthly Mortgage Payment?

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What exactly is on my monthly payment? What am I paying for? Let’s break it down.


The principle refers to the amount you pay monthly on the balance of your loan. This is calculated for you and split up evenly by how many monthly payments you have agreed to make. This will vary depending on your loan amount and term.


This is a fee combined with your principle amount that is paid to the lender. This is dependent on what interest rate you qualify for and how far along into your mortgage payments you are. Included in your closing documents will be a full breakdown of every single payment and how much you are paying towards your interest.

Property Taxes

Naturally, if you buy a property (home) you will have to pay property taxes. This depends on your local government in the area where you home is located. Your property taxes will go towards firefights, schools, roads, and other services that benefit your community.

Homeowners Insurance

Homeowners insurance is mandatory for all homeowners (shocking, I know). This insurance covers your home if there is a fire, flood, break-in, and so on. Depending on your area, type of home, and insurance company you choose, the coverage may vary.

Other Possible Fees


Stands for Private Mortgage Insurance. This fee is only mandatory for all FHA loans, conventional loans that have less than 20% down payment, but not for VA loans. It is required as a protection to the lender in case you default on your loan. Cost will depend on the balance of your loan. 

HOA Dues

Only applicable to homes that reside in an HOA community like condos, townhomes, and gated communities. This covers all your community’s amenities and to keeps everything looking fancy. It may not always be included in your monthly payments and may need to be paid on their own.

If you’d like to know what the fees will look like on a specific property or you’d like to know based on a specific range, give us a call here at The Ben Lemon Team and we would love to assist you with crunching some numbers!


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