Mortgage cost
Your Personal Finance Magazine Finances ~ Banking ~ Investing ~ Financing ~ Credit Cards ~ Insurance
You are here: Home: Financing: Mortgage cost Tuesday ~ March 19 ~ 2024 RSS-Feed Syndication
  Category: Financing

Mortgage cost

The mortgage cost depends on several things ...

 
The latest articles
 
Making money on the side with a model job
Working as a model is the perfect way to make some money on the side with a part-time job that does not require … more
Category: Finances
 
Incoming insurance for foreign guests and visitors to Germany
In the event that foreigners visiting Germany, Switzerland and other Schengen countries are taken ill, the medical costs can be covered by an … more
Category: Insurance
 
Saving money on your grocery bill
Many people pass over the coupon pages of the Sunday newspaper without even giving it a thought. If you found a dollar bill … more
Category: Finances
 
The Rent-to-Own Trap
You see a TV set at the rent-to-own center that you like. It's a big-screen version, complete with high-definition capabilities and a remote … more
Category: Finances
 
Your mortgage cost is going to depend on several things: the amount you borrow, the interest rate you are offered, your annual percentage rate (APR), and the length of your mortgage. Before you shop for your new home, it is important for you to decide how much of a monthly payment you can actually afford. This way you can shop for houses that are in your price range.

APR is the most confusing part of calculating your mortgage. APR combines your interest rate with some of the other fees of your mortgage to show you the true yearly cost of your mortgage. These fees include points, origination fees, and private mortgage insurance.

Your interest rate is the rate that you are charged for the privilege of borrowing money from your lender. This is based on the prime interest rate combined with your credit history. If your credit history is poor, your interest rate will be higher than the prime, and the amount of the difference will depend on how bad your credit rating is. But the interest rate is just part of the APR of your loan. To really understand the cost of your loan, you need to look at the other aspects of figuring out your APR.

Points are increments of a percentage of the interest rate on your loan. These can be paid at your closing, which reduces your interest rate. Origination fees are the fees that the lender charges for the services of making the loan. Some lenders charge origination fees, while others do not. Private mortgage insurance, otherwise known as PMI, is the fee that you pay on a monthly basis if you do not place at least 20% down as a down payment on your loan. Lenders use this insurance as payment if you should fail to pay off your loan. All of these factors contribute to the overall cost of your loan each year, or the APR.

The cost of your loan will also be figured based on the length of time you want to borrow the money. If you get a traditional thirty-year loan, you will have a lower monthly payment then if you get a fifteen or twenty-year loan. The amount you borrow will also affect how much your interest rate will cost you. The more you borrow, the higher your monthly payment will be.

Some homeowners choose to put their tax and insurance payments in escrow. This means that they pay a monthly charge for their taxes and insurance each month with their mortgage payment. If you choose to put these costs in escrow, it will increase your monthly payment. (don)
 
 
Bookmark
Bookmark to Digg.com Bookmark to Del.icio.us Bookmark to Reddit.com Bookmark to Technorati.com Bookmark to StumbleUpon.com
 
 
Rate this Site:

Average rating: 10 of 1 votes.

 
 
Websearch with Google
Porias.com Web
 
------------------------------------------------------------------------------------------------------------------------------------
 
More articles in category Financing:
 
Raising your credit score
The better your credit score and overall creditworthiness, the more likely it is you'll qualify to buy the house of your dreams. You can help yourself for the future by following these steps to make yourself look better. Start now. Don't wait until you decide to start looking for a … more
 
Legitimate online lenders
Financial lenders and mortgage brokers alike have extended their reach to the Internet in an attempt to offer and provide mortgages and loans to those who need them. How can you tell if an online lender is legitimate though? At least you can trust your senses and gut instinct when … more
 
Secure mortgage loan
Acquiring a home is a first time experience that flusters many people. So many new terms to understand can be confusing. In fact, understanding the process from beginning to end is a new experience that often leads to questions. A mortgage is a loan taken out on a first home purchase … more
 
Homeowner loan
With the rising cost of inflation and the appreciation of property across the country, procuring a Homeowner Loan for a large sum of money is a smart idea. Even when still paying off a mortgage, the average homeowner will usually have enough equity to obtain the money needed for things … more
 
How to avoid foreclosure
A mortgage is something that most adults look forward to having at sometime during their lifetime. Along with the pleasure of owning a home, there is the immense responsibility that goes beyond the actual upkeep of the home. There are the actual payments that must be made to the mortgage … more
 
Managing a mortgage
In years past, mortgages were thought of as a means to an end. It was simple – secure a mortgage, make payments for 30 years, and own your home free and clear. At the time, 30-year fixed mortgages were the only option available to homeowners. But as the times have … more
 
 
 
 
 
Your personal finance magazine at Porias.com  
Finances ~ Banking ~ Investing ~ Financing ~ Credit Cards ~ Insurance Copyright © 2005- Porias.com ~ All rights reserved
Schlieίen