Depending on the type of mortgage loan you have. Mortgage equity is what you borrow to buy the house, also known as the loan amount. This is the easiest component of paying off your loan. The interest rate is the cost of borrowing money and, basically, what the bank charges to lend to you money.
Interest rates fluctuate based on a variety of factors, such as the type of loan, location of the home, down payment, credit rating, and more. Your escrow is usually a combination of property tax, homeowners insurance, and possibly private mortgage insurance (PMI). Your escrow account is set up to collect your monthly taxes and your insurance to pay a lump sum at the end of the year. Usually, the lender completes the payment, so it's a simple process for you as a borrower.
At the end of the year, a reconciliation is made and adjustments may need to be made to your escrow and your mortgage payment. Online mortgage calculators are an excellent tool to help you determine what your monthly mortgage payment could be. All you need to do is enter the loan amount, loan term, interest rate, down payment amount, and zip code of the property.
