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.
When you’re ready to take the next step to buying your home, please email me, or give me a call. I’ll be happy to explain the process further
and help you narrow your home search.