Understanding Your Monthly Mortgage Payment

At TVFCU, we want our members to clearly understand their monthly mortgage payment. Knowing what each part of your payment represents can help you manage your finances and stay on track with your loan.

Components of Your Monthly Payment

Your monthly mortgage payment may include:

1. Principal – The portion of your payment that reduces your loan balance.
2. Interest – The cost of borrowing money, based on your loan balance and interest rate.
3. Property Taxes – Local taxes collected to support schools, roads, and other public services.
4. Homeowners Insurance – Protects your home and belongings from damage or loss.
5. Mortgage Insurance – May apply if your down payment was less than 20%, depending on your loan type.
6. HOA Fees – If your home is part of a community with a homeowners association.

Note: Your total monthly payment usually includes all of these components, not just principal and interest.

How to Read Your Mortgage Statement

Each month, your mortgage statement provides important information:

• Amount Due & Due Date – The amount you need to pay and when it’s due.
• Interest Rate – Your loan’s interest rate.
• Fees and Charges – Any late fees or other service fees.
• Past Due Information – If your account is behind, this shows the amount needed to bring it current.
• Customer Service Contact Info – The best way to reach your mortgage servicer if you have questions.

Tip: Review your statement each month. If something is unclear, contact your mortgage servicer or your TVFCU Mortgage loan officer.

Mortgage Types and Payment Differences

• Fixed-Rate Mortgage: Payment stays the same throughout the life of the loan.
• Adjustable-Rate Mortgage (ARM): Payments may change if the interest rate adjusts after the initial period.

Tips for Staying on Track

• Set Up Automatic Payments: Set up automatic payments through your mortgage servicer or bank to avoid late fees.
• Digital Statements: Make sure your contact information is up to date to receive electronic notices.

TVFCU is here to help you every step of the way. If you have questions about your payment or statement, contact your mortgage loan officer for guidance.