What is a Mortgage? Generally speaking, a mortgage is a loan obtained to purchase real estate. The "mortgage" itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two components in common: principal and interest.
1. Principal is the amount borrowed to purchase the property.
2. Interest is the cost of borrowing the money.
When should you apply for a mortgage? The answer is, before you start looking for a home. Why? to see how much you can afford.
Please feel free to use our free Mortgage Calculator to estimate your monthly payments below.
This mortgage calculator can be used to figure out monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment. |
