Looking to Purchase a Home? Learn About Mortgage Options!
This mortgage calculator can be used as a guide in determining what your possible mortgage payments will be. This mortgage calculator assumes interest is compounded monthly, which may or may not be the case. This calculator does not include any taxes, equity, or PMI that could be added to your monthly mortgage payment.
When thinking about buying a house, especially for the first time, there is a lot of terminology that will be thrown at you all at once. Here are some of the things you will hear when discussing purchasing your new home:
Annual Percentage Rate (APR)– the annual rate a lender charges the borrow for borrowing money.
Closing– also known as a settlement, this is when the title of the property is transferred from the current owner to the buyer (or the bank in the case of taking out a mortgage on the home). This is also when the mortgage documents are signed.
Credit History– a record of someone’s history of paying back debt. This is often taken into consideration by mortgage lenders. To keep track of your credit history, you can visit AnnualCreditReport.com for a free credit report each year.
Down Payment– this is the portion of the property’s price that is paid up front, in cash. Generally 10-20% of the purchase price.
Equity– the difference between the market value of the property and the amount still owed on the mortgage.
Points– usually paid in cash at closing, 1 point equals 1% of the loan amount.
Private Mortgage Insurance (PMI)– this is sometimes required when purchasing a home with less than 20% down at time of closing. The PMI costs are typically added into the monthly mortgage payment.
Short Sale– the sale of property for less than is owed on the property. Most short sales of homes must go through extra approvals on the lender’s end.
For more information on home loans, mortgages, mortgage rates and housing information, visit Dream House Help today!