However, if you have an adjustable rate mortgage (ARM) the interest rate fluctuates. Since the interest portion may rise or fall, the monthly payment amount may change every few months. Many borrowers also choose to include funds for their escrow account in the monthly payment, so that the lender can pay annual property taxes and insurance premiums.
Monthly payments are made on all kinds of loans, including those that use home equity as collateral. On a home equity line of credit (HELOC), the monthly payment is calculated based on the balance due, and how much you’ve borrowed. Whereas the monthly payments for a home equity loan depend on the type of program and its terms.