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5 fast facts about your mortgage payment

By Robin Wetherbee

September 2015
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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.

Jane Jackson

Thank you, this was helpful.

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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.