Understanding your mortgage payment

Buying a home is a major financial milestone, and for many, it’s the largest investment they’ll ever make. With a typical 30-year loan, you’re committing to 360 monthly payments. That’s why it’s essential to grasp what’s included in your payment and how it evolves over time.

What Is a Mortgage?

A mortgage is a formal loan contract between you and your lender. The lender provides funds to purchase your home, and you agree to repay that amount plus interest over time. Your monthly payment often includes more than just the loan balance; it may also cover taxes, insurance, and other related costs.

What’s Included in My Payment?

Your mortgage payment generally consists of four components, often abbreviated as PITI:

• Principal: This is the original loan amount.
• Interest: This is the cost of borrowing money. Early in your loan, most of your payment goes toward interest.
• Taxes: Local governments collect property taxes to fund services like schools and emergency services. These are often paid through your monthly mortgage payment if you have an escrow account.
• Insurance: Homeowners insurance protects against damage or loss. If you have an escrow account, your lender pays this on your behalf, though it’s usually up to you to find a provider you like.

You might also have Private Mortgage Insurance (PMI) if you have a conventional loan and your down payment was under 20%, or a Mortgage Insurance Premium (MIP) if you have an FHA loan. These types of mortgage insurance protect your lender in the event that you default on your loan and may be included in your monthly payment.

How Escrow Accounts Work

If your loan includes an escrow account, your lender collects a portion of your annual property taxes and insurance premiums each month and holds it in reserve. When those bills come due, the lender pays them directly from your escrow account. If your taxes or insurance costs rise, the escrow portion of your monthly payment may increase accordingly.

What Is Amortization?

“Amortization” describes how your loan is repaid over time. Your amortization schedule outlines how much of each monthly payment goes toward principal and interest. Early on, most of your payment covers interest. Over time, the principal portion increases.

Scenario: Partial Amortization Schedule*
$400,000 mortgage | 30-year term (360 months) | 6.99% interest rate | 7.058% APR
Monthly P&I = $2,659

Making extra payments toward principal (if allowed) can reduce your total interest costs and allow you to pay off your loan sooner.

When Does My First Payment Begin?

Mortgage payments are typically due on the first of each month and are paid in arrears. For example, if you close on January 20, your first full payment (covering February) would be due March 1.

How Can I Pay?

You may have several options:

Monthly, bi-weekly or semi-monthly: Bi-weekly payments result in 26 half-payments over 12 months, and you end up paying less interest this way, as well as paying down your principal more quickly. Or you can make 24 semi-monthly payments in a year.

Autopay: We enable our borrowers to sign up for autodraft, also known as automatic withdrawal or ACH. With ACH, we’ll automatically withdraw your payment from your bank account each month on a date you designate. You can also choose your frequency of payment.

To set up autodraft, sign into your account, click Account Details to go to your dashboard, click Payments and select Schedule Recurring Payments, then put in your bank account info and hit save.

Manual payments: We offer five ways to pay:

1. Pay on our website. You can make payments through our website so long as you have an online account. Go here to create a new account.

2. Pay online through your bank. If you do your banking online, you can use their website or mobile app – just enter the correct amount of your monthly payment and set the payee name to Shellpoint Mortgage Servicing. If your mortgage has an escrow account or if you have an ARM (adjustable-rate mortgage) loan, be sure to track any changes in your payment and adjust your bill-pay amount before your payment is due.

3. Pay over the phone. We have an automated phone system for payments reachable at 800-365-7107.

4. Pay by check or money order by mailing us a check to:

Shellpoint Mortgage Servicing
P.O. Box 650840
Dallas, TX 75265-0840

Be sure to write your loan number on your check or money order. We do not accept cash payments.

5. Pay by wire transfer using the information below:

Shellpoint Mortgage Servicing
P.O. Box 60535
City of Industry, CA 91716-0535

Be sure to include your loan number and property address.

Paying Off Your Loan

As your balance decreases, you may consider paying off your mortgage early. You can do this, but be aware that you do owe interest up to the end of your loan and you may owe other charges such as taxes and insurance premiums.

To request a payoff quote, sign in to your online account and click Account Details to go to your dashboard. Hover over Payments and choose Request Payoff.

Alternately, you can call us at 800-365-7107. We’ll do the math and mail you a letter going over how much you’ll need in order to pay off your loan.

Note: Your quote will expire eventually, so move decisively once you get it.

If you’d like to send a cashier’s check or wire transfer to pay off your mortgage, use the amount on a current payoff quote. Include your loan number and mail your payoff with a short letter explaining your payoff to:

Citibank N.A
388 Greenwich St.
New York, NY 10013
Routing #: 021000089
Account#: 31354717
Name: SHELLPOINT MORTGAGE SERVICING CONSOLIDATED DEPOSIT ACCOUNT

Have More Questions?

If you’d like help understanding your mortgage details, Shellpoint’s support team is ready to assist. Reach out via live chat on our online portal or give us a call on our customer service line.

*Payment example is based on a 30-year-fixed conventional mortgage with an initial balance of $400,000 at 6.99% (7.058% APR). All interest rates and Annual Percentage Rate (APR) are current as of Jan. 14, 2026  and are subject to change daily without notice, and assume minimum credit score of 720 no HOA fees, and a maximum loan-to-value ratio of 80% on an owner-occupied single family residence. Actual rates available to you may vary based upon a number of factors including your credit rating, size of down payment and amount of documentation. Restrictions may apply. Closing costs are not included. Rolling closing costs into the mortgage will increase the payment. 20% down payment. 360 monthly payments. Payments do not include taxes and insurance. The actual payment obligation may be greater.