What a mortgage payment consists of when buying a home in Wisconsin

HOME BUYER ADVISOR

 Information you need to find the best home and the best loan in Wisconsin 

Mortgages 101

One of the reasons that buying a home is such an emotional experience is because of the fact that not only do you have the actual house buying to deal with, but for most home buyers you also have the mortgage process to encounter. How smoothly this process goes depends greatly on the preparation of the buyer as well as the selection of an efficient mortgage company. To help you be as prepared as possible, read and refer back to the following advice during your mortgage process.

What a Mortgage Payment Consists Of:

1) Principal: The repayment of the original amount borrowed on a monthly basis.

2) Interest: The cost of borrowing the principal amount, repaid on a monthly basis.

3) Taxes: Real Estate taxes paid to a local government agency.

4) Insurance: Homeowners insurance on the home. Also any mortgage insurance, which is paid to protect the mortgage company.

The total of these items is known as the PITI (Principal/Interest/Taxes/Insurance) payment.

Types of Mortgages:

Fixed: A fixed term (for example, 15 or 30 years) as well as a fixed interest rate. The interest rate and term are fixed at the start of the mortgage. The monthly amount for the payment of principal and interest will not change during the term of the mortgage. Adjustable: Often referred to as an ARM (Adjustable Rate Mortgage). The interest rate on your mortgage will be adjusted up or down according to current interest rate levels. The monthly amount for your principal and interest payment will go up or down with these rate changes.

How Much Down?

One of the first questions that home buyers ask is "how much down payment are we going to need?" Unfortunately, there is no standard answer. Some buyers don’t put anything down, but as an average, most home buyers make down payments in the 5%-15% range, although your own personal situation may dictate more or less down payment. When you are factoring money for a downpayment, don't forget about closing costs, which will total in the 2-5% range, payable in cash at the time of closing.

If you would like more information about the mortgage process, please give me a call.

Oh, By the Way…whenever you come across people who are thinking about buying, selling or refinancing a home and would appreciate the same level of service I provide to you, please forward their name and telephone number to me. I will gladly follow up and offer them the high-quality service you currently receive!

Ron Meyer
GSF Mortgage Corporation
920-788-9608
920-213-0428 cell
rmeyer@gsf-mortgage.com
http://www.getapprovedfast.com/
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