What Goes Into Your Monthly Mortgage Payment
Information for First-Time Home Buyers
When you're thinking of buying a home, you may wonder what
your mortgage payment will look like. When you have a mortgage,
you'll have several different portions of your payment each
month.
Your mortgage
payment consists of principal, interest, taxes and insurance
(often abbreviated as "PITI"), and sometimes additional
fees, such as homeowners association dues.
Principal
is the money you borrowed to purchase the home.
Interest
is the cost of borrowing money.
Taxes
are paid by homeowners to local governments, and are usually
a percentage of the assessed property value.
Insurance
helps protect against financial loss from fire, natural disasters
or other hazards. Most lenders require you to have a homeowner's
insurance policy on your home because it will help protect
their investment as well as yours.
Remember,
many loan quotes will only include your principal and interest.
You'll also need to factor in the taxes and insurance to calculate
your total monthly mortgage payment. For a rough estimate
of your monthly payment try our PITI
Calculator
When you're
ready to take the next step to buying your home, please give
email me,
or give me a call. I'll be happy to explain the process further
and help you narrow your home search.
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