What Happens When you Make Your Mortgage Payment: Where Does the Money Go?

When you make a mortgage payment a few things happen. Your loan servicer makes a payment to your local tax assessor and also makes a payment on your homeowner insurance. Some mortgage companies also pay your home owners association. Your principal and interest are sent to whoever owns the note on your house which is NOT usually the mortgage company that originated your loan.

A completely different set of things happen when you make your last mortgage payment.

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