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Managing Your Mortgage Payments

Where Your Monthly Payment Goes

Each month, you'll make a monthly payment to your lender that will go toward paying back the amount you borrowed (commonly called the principal), plus interest. Your monthly payment may also include mortgage insurance.

Your mortgage statements will show how your payment is broken up. Initially, the bulk of your payment will go toward paying down the interest on the loan, but over time, more of your payment will go to paying down the principal balance.

If you have an escrow account on your loan, part of your payment will go there. The amount of money that's added to your payment for escrow depends on the amount of your taxes and insurance premiums. Your lender will analyze your account each year to make sure they're collecting the appropriate amount of money, and they'll adjust your payment if they're collecting too little or too much.

When will my first mortgage payment be due?

Your first mortgage payment won't be due for up to two months after closing. If you close on June 9, for example, you'll pay per diem interest at closing to cover the period between June 9 and June 30. Then, your payment for the month of July will be due on August 1.

Amortization Calculator

Use our amortization calculator to see how your monthly payment breaks down and how additional payments can save you money on interest.

What should I do if I'm going to miss a mortgage payment?

Contact your lender about 10 to 12 business day before your payment is due if you think you are going to miss a payment. Payments are on an automatic withdrawal system and they will need time to contact the bank to stop the payment from going through. This will keep your credit intact by not having any NSF on your account and you will not have to pay a bank NSF bee plus a missed payment fee to your mortgage lender. Missing multiple payments can hurt your credit score, but it can also lead you to default on the loan – and you could lose your house. If you're experiencing a hardship, your lender may be able to create a payment plan to help you get back on track.

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