What is included in a mortgage payment?
Separate the base principal-and-interest payment from insurance, taxes, fees and other recurring housing costs.
The base mortgage payment covers principal and interest. A real lender payment may also collect life or property insurance, taxes, servicing charges or other contract-specific amounts.
If the base payment is $17,994.52, monthly insurance is $900 and another charge is $150:
all-in payment = 17994.52 + 900 + 150 = 19044.52Purchase expenses such as the down payment, appraisal, notary work, registration and taxes are normally separate from the recurring principal-and-interest calculation, although some costs may be financed.
Read the lender’s quotation line by line: principal, rate, term, base payment, every recurring charge, initial cash required, total repayment and Mexico’s CAT where applicable.
The mortgage calculator estimates principal and interest; add external costs separately.