What is the Real Cost of a Mortgage? florida home loan
from servicemagic.com
The total cost of a mortgage is comprised of four main elements:
1. Principal florida home loan
2. Interest
3. Taxes
4. florida home loan Insurance
PITI is part of the formula that mortgage lenders use when calculating your affordability ratios. florida home loan Many times home buyers ignore these florida home loan additional costs when figuring how much of a home they can afford.
Principal florida home loan
Principal represents the amount you borrow, which has to be repaid over time.
Interest
Interest is the cost that florida home loan mortgage lenders charge for the use of their money during your repayment schedule. florida home loan
Taxes
Taxes are an assessment that local governments collect on property to pay for local services. florida home loan Property tax rates will vary by location and can affect your total cost and affordability.
Insurance florida home loan
Homeowner's Insurance will be required to replace the value of loan in the event of a disaster such as fire, florida home loan earthquake, flood, etc.
Understanding Escrow
Property taxes and insurance costs must be collected and paid when they are due. florida home loan
