Principal
The portion of a payment that reduces the amount borrowed.
Mortgage basics
Know the building blocks.
A mortgage payment can include principal, interest, property taxes, homeowners insurance, and sometimes mortgage insurance or association costs.
Interest
The cost of borrowing, determined by the loan terms and borrower circumstances.
Cash to close
The funds due at closing can include a down payment, closing costs, and prepaid items. An actual amount requires provider documentation.
Questions worth bringing
Ask what changes the payment, which costs are one-time or recurring, what documentation is needed, and which terms can change.