The Marquee Loop: Principal & Interest
The Marquee Loop:
Mortgage Myths: Separating the fact from fiction
The Myth: Principal and Interest payments are all that matters
The Fact: There are other costs that are included in your total mortgage payment.
The other costs that are sometimes included in your monthly mortgage payment are called escrows or impounds such as:
- Property Taxes
- Homeowners insurance
- Monthly mortgage insurance
Typically, mortgages that have lower or less than a 20% down payment will be required by the lender to have an impound account. This impound account is designed to include your monthly real estate tax payment, homeowners insurance premium, and monthly mortgage insurance premium.
Contact one of our Loan Officers for further details and be sure to follow our Blog weekly to gain more insights on Mortgage Myths.
*Marquee Mortgage LLC, is an independent, full service broker specializing in purchase money loans, refinances and creative lending solutions.