Module Your Mortgage Plan, explained
Reading your Mortgage Plan
The question: What am I looking at in my Mortgage Plan?
For: Anyone who has received a Mortgage Plan
The short version
Your Mortgage Plan is a page we build with your own numbers. Each loan option is a card, numbered Option 1, Option 2 and so on, so labels do not steer you.
- Monthly payment and cash to close are the two main numbers on each card. Tap Breakdown on either to see every part. The parts add up exactly.
- Tags state facts, such as the lowest payment or the least cash to close among the options showing. They are not recommendations. Tap one to see that topic from that option's side.
Switch options on or off at the top to compare only the ones you want.
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Go deeper
The payment breakdown
Tap Breakdown on the monthly payment to see each part, to the cent: principal, interest, property taxes, homeowner's insurance and mortgage insurance.
Principal pays down your loan and builds equity. Interest and mortgage insurance are the cost of borrowing. Taxes and insurance are your own bills, collected monthly and paid from escrow, so that part changes when those bills change.
The cash to close breakdown
Breakdown on cash to close lists your down payment, lender fees, title and government fees, and prepaids and escrow, minus any credits. The amounts are whole dollars that add up exactly to the total.
Not all of it is cost. The down payment becomes equity, and the prepaid insurance, taxes and escrow are your own bills paid ahead. The fees and prepaid interest are the real cost of getting the loan and closing.
Tags are facts, not advice
A tag such as "lowest payment" or "least cash to close" appears when two or more options are showing, judged on the figures as shown. Ties all get the tag, unless every option ties. Other tags simply describe an option, such as no mortgage insurance.
A tag tells you where an option stands on one line. Which option fits depends on your plans, your cash and how long you will keep the loan.
Beyond the cards
Your Mortgage Plan also shows:
- Cost over 3, 5, 7 and 10 years for each option
- The points break-even month
- How the payment changes if the rate moves before you lock
- What extra payments would save
- When mortgage insurance ends
- Your qualifying ratios (DTI) against each loan's guideline
- On a refinance, how long until it pays off