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January 19, 2023
The distinction between your principal and interest payment and your total monthly payment is that your entire monthly payment frequently includes other charges such as homeowners insurance, taxes, and perhaps mortgage insurance. The principal and interest payment is most likely an essential component of your monthly mortgage payment. The principal is the amount borrowed and must be repaid, while interest is the fee charged by the lender for lending you the money. Most borrowers' total monthly payment to their mortgage company includes other items such as homeowners insurance and taxes, which may be stored in an escrow account.