Demystifying Mortgage Payments: Everything You Need to Know!

Demystifying Mortgage Payments: Everything You Need to Know!

Today, we’re going to talk about demystifying mortgage payments. We’ll give you all the essential information you need to know to get you into your home smoothly and quickly. What exactly is a mortgage payment? Well, that’s a monthly payment that your lender It’s going to going to have various criteria.

You’re going to have your mortgage payment to the lender. You’re going to have your taxes, you’re going to have your insurance and possibly mortgage insurance. Those four things will cover your entire mortgage payment and you’re going to repay that loan. And as you pay it, it’s going to go down and you’re going to build equity in the property.

Hopefully the value of the property goes up and then when you sell it, you can get the difference. So calculating mortgage payment is a few key factors. The principal amount is the total amount that you owe. The interest rate is the annual percentage charged by your lender, and the term is the length.

Typically the total loan amount is going to be your sales price minus your down payment. Interest rate is going to be what the market is at that time. And then the term is usually a 30 year term, although you can do a 15 year, you can do a 20 year, you can do shorter terms if you want to do that.

Different mortgage options offer various terms and interest rates. A fixed rate mortgage comes with a stable interest rate that never changes over the long term, while an adjustable rate may have an interest rate that’s a little bit lower in the beginning and then goes up later and can adjust the market forces later.

To determine the mortgage payment that fits your budget, it’s important to consider income, expenses, and any future financial goals. Consulting a mortgage broker can help you navigate through various loan options and find the best fit for your financial situation. Once you’ve chosen a mortgage, remember to carefully read and understand all the terms.

Ask the right questions. Say you can go through go through all the various fees and say what’s going to happen up next once your mortgage is established You’re gonna have various payment collection. People are worried about the banks collecting their payments. Trust me They make it real easy to take your money.

You can pay it by check. You can pay over the phone You can pay online. You could probably even Venmo it. They’re gonna make it easy to collect that money You don’t need to worry about that too much Lastly ultimate goal is to pay off your mortgage if you make extra payments This is going to shorten the term because it’s going to cut down the principal and then you’re going to get charged less interest because you’re only charged on interest on the remaining principal balance.

And as you pay that down, you might make the same payment out per month, but a higher percentage is going to go towards principal. If you want me to walk, walk you through an amortization schedule, typically one extra payment per year is going to say, going to take off seven years off a 30 year mortgage.

So if you want to do that, we can walk you through that. It’s important to maybe pay off none. In tax deductible debt first, but if you’ve got extra principal payments to make, putting it towards your mortgage helps. Thanks for watching our video on demystifying mortgage payments. Don’t forget to subscribe to our channel.

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