Understanding Monthly Mortgage Payments
Principal and Interest
The monthly mortgage payment, which includes the regular principal payment as well as interest accrued during the prior month.
Are specific to each individual property and will be estimated until you’ve chosen a specific home. Once you have a purchase contract on a home, the numbers will be adjusted to the exact property taxes.
Often called Hazard Insurance, this policy protects you, the property owner if your home were to be damaged.
Mortgage Insurance (M.I.)
M.I. or PMI is an insurance policy to protect the lender in the event that a borrower defaults on their loan payment.
Home Owners Association Dues (HOA Dues)
A charge from the community your home is located in. These funds are used for everything from maintenance of the community common areas to managing the neighborhood.