New Home Mortgages
Are you planning to buy a new home? If so, you probably need to take out a home mortgage. A home mortgage is a type of loan buyers get to help them afford the cost of a house. Buyers put down as much of an initial payment as they can afford, and pay the rest in monthly installments combined with interest and insurance costs. Here are some terms you will need to understand in your search for a home mortgage:
- Forclosure = When taking out a mortgage, the house itself is used as a form of collateral. Forclosure is the process by which the lender can seize the house, should you fail to make the payments as specified in the loan agreement.
- Amortization = The repayment formula that monthly mortgage payments are based on, in which the interest is calculated spread over the entire term of the loan so that the monthly payments can be affordable. Amortization keeps the payments more consistent by paying more towards interest in the early years of the loan, in a ratio that contributes more towards the principal with time.
- PITI = The common parts of monthly mortgage payments, namely Principal, Interest, Taxes (real estate), and Insurance (property).
- Fixed Rate Mortgages = The interest rate is agreed upon the closure of the loan agreement, and remains the same throughout the duration of the mortgage, independent of the fluctuations in the going national rate.
Home Mortgage Quotations
The best way to begin your home mortgage search is by contacting one of our recommended lenders, listed on the right. Call them right away to lock in the lowest possible rates on your home mortgage today!
April 24, 2006