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What is the Real Cost of a Mortgage? first horizon home loan

from servicemagic.com

The total cost of a mortgage is comprised of four main elements:

1. Principal first horizon home loan
2. Interest
3. Taxes
4. first horizon home loan Insurance

PITI is part of the formula that mortgage lenders use when calculating your affordability ratios. first horizon home loan Many times home buyers ignore these first horizon home loan additional costs when figuring how much of a home they can afford.

Principal first horizon home loan
Principal represents the amount you borrow, which has to be repaid over time.

Interest
Interest is the cost that first horizon home loan mortgage lenders charge for the use of their money during your repayment schedule.  first horizon home loan

Taxes
Taxes are an assessment that local governments collect on property to pay for local services. first horizon home loan Property tax rates will vary by location and can affect your total cost and affordability.

Insurance first horizon home loan
Homeowner's Insurance will be required to replace the value of loan in the event of a disaster such as fire, first horizon home loan earthquake, flood, etc.

Understanding Escrow
Property taxes and insurance costs must be collected and paid when they are due. first horizon home loan

 

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