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Are you curious as to how Mortgage Amortization Works?

Amortization is the technical term for how your mortgage is paid off over time and determines the amount of your monthly mortgage payment. Except for interest-only mortgages, all mortgages amortize, which means the vast majority of mortgages amortize. For amortizing mortgages, the mortgage payment is split between principal and interest. The principal component of your mortgage payment goes to paying down the mortgage balance. The interest component of your mortgage payment represents the cost of borrowing money from the lender and does not reduce your mortgage balance.

Are you familiar with the lender fees worksheet?

The Lender Fees Worksheet provides a detailed breakdown of the up-front closing costs and expenses associated with a mortgage. The Lender Fees Worksheet also includes estimated total monthly housing expense including your mortgage payment, property taxes, homeowner's insurance and other applicable housing-related expenses. To give yourself a clear understanding,ask for the Lender Fees Worksheet when you submit your loan application or request a mortgage proposal.

Curious as to what your mortgage will cover? Take a look

Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you've borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too.

In addition to the mortgage payment, what other costs do you need to consider?

Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. A broker here at Miller Mortgage will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, we will be able to help you anticipate these costs.

If you have any questions give us a call 

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