Danny's Real Estate Blog - Blog Archive: October, 2016

Danny's Real Estate Blog - Blog Archive: October, 2016 Close
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October 2016

There are 2 blog entries for October 2016.

Interest rates are just one of the factors making up your loan. Your mortgage payment consists of four components: Principal, Interest, Taxes, and Insurance. The higher the interest rate, the more in interest. Not that hard to figure out. There's more.

Your interest rate is determined by a few different things: credit score, down payment amount, number of years in the loan, and loan program. Things which could get you a better interest rate include: a high credit score, significant down payment (at least 20%), fewer years on the loan (15-20), and more. The various loan programs also have slightly different interest rates as well, so it depends on which program you qualify for. Your lender can help you make this decision, and I can help refer you to a

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When it comes to making your monthly mortgage payment, what all is involved in the payment? Yes, you make one lump payment. But what’s in that payment, and what does it mean for you? Can it change? Here's the answers to your questions.

Principal and Interest 

The monthly mortgage payment includes the interest accrued during the prior month plus the scheduled principal. The principal is what gets counted towards your payoff (when you sell the house), and interest is the amount the bank makes monthly. Unless you refinance the home, this number doesn’t change. You pay very little in principal, and a lot in interest, at the beginning. This does change every month, and you’ll get an amortization schedule at closing showing you the exact number each

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