What’s the true cost of your mortgage? Ask your mortgage lenders before you sign on the dotted line.
Home ownership is exciting. However, it can sometimes be confusing when it comes to understanding the real cost of your mortgage. That’s why it’s important to work with professional mortgage lenders.
There are many factors that are considered to determine your monthly mortgage payment. Your payment may include principle, interest, taxes, and insurance. Here’s a quick run-down of what these components entail.
The principle is the amount of money you actually borrowed from lenders to purchase your new home.
The interest is the amount the mortgage lenders charge you for the loan. The majority of your monthly mortgage payment is applied to the interest. Over time, the amount of money being applied to your principle will increase.
Most mortgage loans include property taxes. A certain amount each month is set aside to pay your taxes. As your principle decreases, many mortgage lenders will stop collecting taxes and allow you to pay them on your own.
A portion of your mortgage payment may be applied to your homeowners insurance. Additionally, if your down payment is small, or the lender considers you a risk, you may be required to pay mortgage insurance, or PMI.
For more information about the real cost of a home mortgage contact the mortgage lenders at Midland Mortgage Corp. Call, 803.765.1680 or toll –free 800.854.9484 today.