Mortgage guides
Where does your monthly housing money go? | Mortgage 101
Sources and calculations checked:
See the main parts of total monthly housing expenses, from principal and interest to taxes and insurance.
What makes up total monthly housing expenses?
Reduces your loan balance
The cost of borrowing
Paid to local government
Covers risks under your policy
Primarily protects the lender
Usually paid separately
Principal and interest are only part of the total. Property taxes and homeowners insurance may be paid through escrow; HOA fees are usually separate.
Diagram does not show actual amounts, proportions, or a complete list of costs.
One thing to remember
Total monthly housing expenses include more than principal and interest.
Plan for taxes, homeowners insurance, applicable mortgage insurance and HOA fees. Some costs go through your servicer; others are paid separately. Check your loan documents and bills.
CFPB: Explanation and conditions