What Will My Mortgage Cover?
So, you are ready to purchase a house. Maybe you have been renting for a few years. Maybe you currently own a home, but you are ready to downsize or ready to expand. One of the first things you should consider is your comfort level for a monthly payment. We will cover more information on this in later blogs, or you can reach out to me now at firstname.lastname@example.org to talk through it. But first, it is important to know what goes into the typical mortgage payment. The items included are dependent on the property type and the loan program you select; however, most conventional loans have four parts:
Principal: The repayment of the amount you actually borrowed (you’re welcome!)
Interest: Payment of the lender for the money you’ve borrowed (sorry…)
Homeowner’s Insurance: Monthly amount to insure the property against loss from fire, smoke, theft, and other hazards
Property Taxes: The annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year.
Interested in what in your mortgage payment can change after closing? Stay tuned to learn more!