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( Keeping Track of Your Mortgage Payments )

What Happens to Your Monthly Payment?

You'll pay your lender a monthly payment toward repaying the amount you borrowed (often referred to as the principal), plus interest. Mortgage insurance may be included in your monthly payment. 
The breakdown of your payment will be shown on your mortgage statements. Initially, most of your payment will be used to pay down the loan's interest, but as time passes, more of your contribution will be used to pay down the main sum.
If your loan has an escrow account, a portion of your payment will be deposited there. The amount of money added to your escrow payment is determined by the amount of taxes and insurance premiums you owe. Each year, your lender will review your account to ensure that they are collecting the correct amount of money, and if they aren't, they will adjust your payment.
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How to Deal with a Late Mortgage Payment

You probably won't have to pay the penalty if you're a few days late on your mortgage payment. Most lenders offer a grace period – usually approximately 14 days – during which you can pay your mortgage without incurring a late fee. You'll almost certainly face a penalty if you don't pay before the grace period ends. A missed payment will also reduce your credit score.

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