Monthly mortgage payments often include not only principal & interest, but also payments to an escrow account for property taxes, and for homeowners insurance (HOI). The amount collected for escrow per month is 1/12 of the annual premium for these two items. For example, if your property taxes are $2400/year, you would pay $2400/12 = […]
Your interest rate is simply the cost of borrowing the principal amount of your loan. Your APR (annual percentage rate) attempts to combine all the costs of your mortgage (interest rate, lender fees, discount points, closing costs, etc.) and represent this total cost as a percentage. The APR was developed to compare multiple loan options […]
A Pre-Approval is a great tool for you and your Realtor when making an offer on a home. The Pre-Approval serves a few purposes: Demonstrates to your Realtor that you are a serious buyer Strengthens your offer — the seller knows you can qualify for a mortgage Enables your lender or broker to troubleshoot your […]