Frequently Asked Questions

Your monthly mortgage payment may include several different components.

The most common are:

• Principal: The portion applied toward repaying your loan balance.
• Interest: The cost of borrowing the outstanding mortgage balance.
• Property taxes: May be collected through an escrow account.
• Homeowners insurance: May also be collected through escrow.
• Mortgage insurance: May apply depending on the loan program and down payment.

HOA dues and some other homeownership expenses may need to be paid separately.

When comparing mortgage options, it’s important to understand whether the quoted payment includes only principal and interest or the broader estimated housing expenses.

Our Mortgage Payment Calculator can help you explore these amounts.

A mortgage escrow account is generally used by your loan servicer to collect funds for certain property-related expenses.

These commonly include property taxes and homeowners insurance.

Instead of paying those bills entirely on your own when they become due, a portion of your monthly mortgage payment is placed into the escrow account.

The servicer then uses the available funds to pay the covered bills according to the account requirements.

The amounts collected may change if property taxes or insurance premiums change.

Your servicer will generally provide escrow-account information and periodic reviews explaining how the required payment is calculated.

They may be, depending on whether your mortgage requires or permits an escrow account.

If your loan has an escrow account, your servicer generally collects amounts for taxes and insurance as part of your monthly mortgage payment.

If you don’t have an escrow account, you may be responsible for paying those bills directly when due.

This distinction is important when comparing monthly housing costs.

A quote showing only principal and interest won’t reflect your complete monthly housing budget.

We’ll explain how taxes and insurance are being treated in the loan scenario you’re considering.

Yes.

On a fixed-rate mortgage, your scheduled principal-and-interest payment generally remains the same over the loan term.

However, your total monthly payment can still change if other components change.

Common reasons include:

• Higher property taxes
• Increased homeowners insurance premiums
• Changes in required escrow deposits
• An escrow shortage

For example, if your homeowners insurance premium increases, your servicer may need to collect more each month to cover the new annual amount.

If your payment changes, review your servicer’s escrow analysis or payment notice to understand the reason.

An escrow shortage occurs when your escrow account has less money than the amount required under the servicer’s projected expenses and applicable account requirements.

This may happen when property taxes or insurance premiums increase beyond what was previously estimated.

Depending on the situation and applicable rules, your servicer may provide options such as paying the shortage amount or spreading repayment over future monthly payments.

Your regular escrow collection may also increase to account for higher expected bills.

The servicer can provide the exact shortage calculation and available payment options.

If you have questions about the figures, contact your current loan servicer for the account-specific explanation.

Possibly. Some mortgage programs permit eligible borrowers to waive escrow and pay property taxes and homeowners insurance directly.

However, other loans require an escrow account.

Eligibility may depend on factors such as:

• Loan program
• Loan-to-value ratio
• Lender requirements
• Property characteristics
• Applicable state or federal rules

An escrow waiver may also involve additional pricing or fees under certain programs.

We’ll help you understand whether an escrow waiver is available for your mortgage and any conditions that apply.

The mortgage lender is the institution that provides or funds the mortgage under the loan arrangement.

The loan servicer manages the ongoing administration of the mortgage after closing.

Servicing responsibilities may include:

• Receiving monthly payments
• Providing mortgage statements
• Managing escrow accounts
• Processing payoff requests
• Handling certain account-related questions

The company servicing your mortgage may be different from the company that originally funded the loan.

As a mortgage broker, Lock It Mortgage helps arrange financing through wholesale lending partners rather than acting as the ongoing servicer for every loan.

After closing, your mortgage payments will be handled by the designated loan servicer.

Your closing documents and servicing notices should tell you where to send payments and how to contact the company responsible for servicing your loan.

In some situations, servicing may later be transferred to another company.

If that happens, you should receive the applicable notices explaining the change and providing updated payment information.

Because mortgage-payment scams exist, always verify new payment instructions using trusted servicing documents or contact information.

If you’re unsure which company services your mortgage, begin with your loan documents and the most recent servicing statement.

Absolutely. Closing your mortgage doesn’t mean you can no longer reach out to our team.

As time passes, your financial situation and homeownership goals may change.

You might have questions about:

• Refinancing your current mortgage
• Accessing home equity
• Purchasing another home
• Financing an investment property
• Comparing new mortgage options
• Understanding how market changes may affect future financing decisions

Sometimes our review may help you determine that no new mortgage action is needed.

For account-specific matters such as payment processing, escrow adjustments, or payoff statements, your current loan servicer is generally the appropriate contact.

But when you have questions about your mortgage options or future financing plans, we’re happy to help you understand what’s available.