Title: Common Mortgage Terms for First-Time Home buyers
1(No Transcript)
2 Introduction
- When buying a home for the first time, you will
come across different terminologies in the
process. Some of these terminologies you may know
while some you may find it hard to understand.
This presentation will help you understand the
terms that will help the homebuyers during the
mortgage process.
2
3- 1 PITIA
- The term PITIA might sound confusing. However, it
is the abbreviation for, - Principal The unpaid balance amount on your
loan at any time is your principal. - Interest - Percentage of money your mortgage
lender is charging against the loan. - Taxes Taxes such as property tax are considered
as a part of your mortgage payment. - Insurance Required to ensure that the house can
be rebuilt in case of a natural disaster. - Association Dues Dues included in your payment
if you are moving into a condo with a homeowners
association.
4- 2 Annual Percentage Rate
- Also known as APR.
- It includes the basic interest charge and the
fees of the mortgage lender for other closing
costs. - 3 Term
- It is the time required to pay your loan off if
you make regular payments. - To calculate the term, you must consider a
minimum principal and interest payment every
month. - The longer the term, the higher the rate of
interest.
3
5- 4 Fixed and Adjustable-Rate Mortgage
- In Fixed-Rate Mortgage (FRM), only taxes
fluctuates and the rate remains the same
throughout the term. - In an Adjustable-Rate Mortgage, the rate is
fixed to lower rates compared to FRM. - 5 Amortization
- It is the amount of principal and interest paid
every month over the term. - You can either make normal payments or pay extra
every month towards the principal amount. - This will help you save on interest on your loan.
3
6- 6 Titles and Deeds
- Title -
- o A title is proof of ownership.
- o It has a physical description of the home and
land you want to buy. - Deed -
- o A deed is an actual document that you get
during the closing. - o It states that the property is yours.
3
7- Facing the terms for the first time when you
dont know what they mean might leave you
nervous. Being a trusted mortgage lender in MA,
we have loan officers that guide you throughout
the mortgage process. - To read more on mortgage terms click here
https//www.drewmortgage.com/common-terms-you-shou
ld-know-before-applying-for-mortgage/
4
8DREW MORTGAGE BRANCH OFFICES
Drew Mortgage Associates 196 Boston Turnpike
Road Shrewsbury, MA 01545 Phone
508-753-1656 Website https//www.drewmortgage.com
/
Peabody Mortgage Lenders 1 Mt Pleasant
Drive Peabody, MA 01960 Phone (978) 750-1080
Boston Mortgage Lenders 232 Commercial St Boston,
MA 02109 Phone (617) 523-3060
10
9(No Transcript)