The 4 parts Covered in a Mortgage Loan

Brevard County Real Estate Blog Post

Date Added: 6/15/2020

Generally speaking, most home loans consist of 4 parts. The first part is called principal, which is the repayment of the amount that the individual (you) actually borrowed. The second part is the interest, and that is the payment to your lender for the money that you've borrowed. The third part is your homeowner’s insurance, which is required by most lenders: this is a monthly amount paid to insure your property in the event of loss from fire and smoke damage, theft, and other common hazards. Finally, you have your property taxes. Your property taxes will equal the annual city or county taxes assessed on your property, divided by the number of mortgage payments you pay in a given year.