Mortgage Basics Guide
Understanding your home loan is the key to financial stability. Our guides simplify the complex world of interest rates, escrow, and monthly payments.
How Do Mortgages Work?
A mortgage is a loan used to buy a home, typically repaid over 15-30 years. Your monthly payment (PITI) includes principal, interest, property taxes, and insurance. Early payments are mostly interest; over time, more goes toward principal. Down payments under 20% require PMI. Understanding these basics helps you budget accurately and choose the right loan.
What Is Included in a Mortgage Payment
A full breakdown of PITI, PMI, insurance, taxes, and HOA costs.
Mortgage Basics for First-Time Buyers
A step-by-step roadmap from pre-approval to closing day.
Mortgage Calculator Guide
Learn how to accurately estimate your monthly payments including PITI and PMI.
Mortgage Payment with PMI
Understand how PMI changes your monthly payment and when it can drop off.
Amortization Impact Guide
See how interest and principal shift over time and how extra payments help.
Home Refinance Strategy
Calculate savings, break-even points, and learn when refinancing makes financial sense.
Down Payment & PMI Guides
Compare FHA and conventional loan costs, learn when PMI cancels, and model the true cost of different down payment levels.
FHA vs Conventional Loan Cost
FHA MIP is permanent for most borrowers. Conventional PMI cancels at 80% LTV. Which loan type costs less over 5, 10, and 20 years?
How to Remove PMI Early
Three strategies to cancel PMI before the scheduled date: appreciation-based appraisal, extra principal payments, and refinancing.
10% Down Payment: Pros, Cons, and True Cost
How 10% down compares to 5% and 20% on monthly payment, PMI cost, and the opportunity value of the capital you keep liquid.
Loan Term & Affordability
Compare 15 vs 30 year loan costs and calculate how much house your income, debt, and down payment can support.
15 vs 30 Year Mortgage (Cost, Payment, and Break-Even Analysis)
The 15-year loan saves $264,960 in interest on a $350,000 balance but requires $741/month more. See the full payment, equity, and investment comparison.
How Much House Can I Afford?
The 28/36 DTI rule explained with a worked example for $100,000 income. See how existing debt, down payment, and taxes change your affordable home price.
Monthly Payment Components
Go deeper into how your monthly payment is built, including principal, interest, taxes, insurance, and PMI.
Calculate Your Payment
Ready to see your monthly commitment? Use our calculator.
Launch Mortgage CalculatorThis article is for general informational purposes only and is not financial or legal advice.
Frequently Asked Questions
What is included in a mortgage payment?
A typical mortgage payment includes principal and interest, plus property taxes and homeowners insurance (PITI). Some loans also include private mortgage insurance (PMI) and HOA dues.
How does PMI affect a mortgage payment?
PMI is an additional monthly premium required on many conventional loans when your down payment is below 20%. It increases your total monthly payment until you reach sufficient equity and can remove it.
When does refinancing a mortgage make sense?
Refinancing can make sense if you can lower your interest rate, reduce your payment, or remove PMI and your break-even period is reasonable. Use the refinance guide to compare savings versus closing costs.
How do I read a mortgage amortization schedule?
An amortization schedule shows how each payment splits between interest and principal over time. Early payments are mostly interest, while later payments build equity faster.