You’d be surprised just how eye-opening it is to know that a house payment doesn’t just go toward your mortgage. So much more is involved with the kind of house payment you have every month, and it’s important to know what your money’s really going into.
Believe It or Not, That House Payment Doesn’t Just Go to the Principal
(the Mortgage Itself), But Actual Interest
In a way, you’re paying a bit more toward an interest rate. Here’s the good news, though: over time, that interest portion of your house payment ends up shrinking down to nothing.
The key to making sure you’re not throwing away money, though, is to keep making those payments on time like you should. Interest rates are normal — but you have control over just how little — or how much — you end up spending.
What About Taxes on Your House Payment?
This is a big variable. Pay close attention. The funny thing is this can fluctuate over time as a home’s assessed value influences the tax portion of your house 
— and everyone knows your home value changes over time.
The good news is you can actually get the exact monthly property tax outlay on the statements your lender legally provides for you. You’ll always be in the know. And if by chance anything looks funny…. The great thing is the local tax authority’s just a phone call away!
And Don’t Forget About the Mortgage Insurance
Yes. That’s included in the house payment as well, a little convenient for you, but also something you need to keep in mind especially if you live in an area prone to floods, fire or even high crime.
It’s true — you are required to make that homeowner’s insurance premium payment as part of your mortgage. It’s a great idea to find out whether or not you need supplemental mortgage insurance as a sub-prime borrower or if the included portion will be enough.
So in a Sense, You’re Not Just Paying for the Home, But the Land the Home Is On, and the Insurance With It
Changes the whole perspective, right? You’ll learn a lot more from the H.O.P.E. Program right here.