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Loan Estimate: How much will my payments be for this mortgage?

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Nice moves! Yep, it's Holden again. Look over here at Page 1. This is where you're going to be able to determine what your monthly payment will be.

This number is your projected monthly payment. It's based on 3 deciding factors: principal and interest, mortgage insurance, and estimated escrow. Add these numbers to understand the monthly payment you're getting into.

I taught him everything he knows.

Your estimated monthly mortgage payment is listed under the "Projected Payments" section on Page 1 of the Loan Estimate.

Loan Estimate form, page 1

Page 1 of Loan Estimate form

This section divides the mortgage payment into 3 parts:

  • Principal and interest. This is the portion of the payment that goes to the bank to pay off the amount you borrowed, plus interest.
  • Mortgage insurance. If you borrow more than 80% of the home's value, the lender will require you to pay mortgage insurance. This is how much mortgage insurance will cost per month. For more information, read the basics of mortgage insurance.
  • Estimated escrow. This is an estimate of the monthly cost of your property taxes and homeowners insurance. For more information, read the basics of escrow accounts.

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