Mortgage guide

Six parts of a monthly house payment.

The price of the home gets attention. The monthly cost deserves just as much.

Principal

The portion that pays down the amount borrowed. It starts small on a typical fixed-rate loan and grows as the balance falls.

The lender's charge for the loan. Your rate, term, and extra principal payments all affect the amount paid over time.

Often collected monthly by the lender and held in escrow, but the amount comes from a local taxing authority and can change.

Coverage that protects the property. Premiums differ based on the home, location, deductible, coverage level, and insurer.

Private mortgage insurance may be required with a smaller down payment. Ask a lender when it may be removed.

Some communities charge dues for common areas or services. These are separate from a loan but matter to the monthly budget.