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Monthly Mortage at a Glance
THE MONTHLY RATE FOR YOUR HOME LOAN DEPENDS ON A FEW FACTORS
It is natural to make some mistakes when a buying a home. But of some of those mistakes can cost you thousands of dollars! We compiled a list of what and what not to do. Some of these tips may save you some money and some tips are just to make your daily life easier for your ne home. Our tips will help you save time on your search for your dream home and could possibly save you thousands of dollars!
Home Loan Type
There are different loans for different home owners and they have different rates and requirements. Choosing the right mortgage is lengthy and
complicated process so make sure that when you choose right one. Ask your real estate agent for recommendations.
Home Loan Principal
Minus the down payment you put down on the property, the principal of your home loan is the agreed price of the home. The principal is the final sum of your house. Not what you are paying monthly. Higher cost principal means higher monthly payments.
Down Payment
Higher down payment means lower home principal because the home loan principal is the home’s cost after subtracting the down payment. Depending on your loan and the market, you may have to put higher down payment. Higher down payment means lower principal of the home which also means lower monthly payment. Work with your agent and find what works for you.
What Are Other Monthly Cost on Your Home?
Your mortgage will most likely be the highest monthly bill for you but there are other bill to consider.
Private Mortgage Insurance (PMI)
If you do not meet some requirements, you may have to purchase Private Mortgage Insurance (PMI). PMI is often require if you are using a conventional home loan and is putting down less than 20% of the purchase price.
Home Owner Association Fees
Most subdivisions and neighborhoods have Home Owner Associations (HOA). These are organizations whose goal is to protect residents and home values in the neighborhood. Speak with your agent about these monthly costs during the search so there are no surprises and you can budget properly. Make sure to speak with your agent about these monthly costs during the search so you can budget appropriately!