Let's Talk Mortgages

Mortgages have been around for thousands of years, but the concept has changed quite a bit since then. Mortgages are loans that allow you to purchase real estate by borrowing the money from a bank or other lender and agreeing to pay it back over time with interest. When you buy a home, you usually put down some money (also called "equity" or "down payment") and then borrow the rest from your lender. The amount of your monthly payment depends on several factors, including the amount borrowed, the size of each payment and how long before you plan to pay off the loan in full. For example, if you borrow $100K at 6% interest for 30 years at an annual percentage rate (APR) of 5%, your monthly payment would be approximately $2,906.

There are many different types of mortgages. Some mortgages require no down payment at all; others require 20% or more down; some mortgages allow prepayment without penalty; others charge prepayment penalties; some mortgages have low initial rates that increase after a few years; others have fixed rates for their entire term; and so on.

If you're thinking about buying a home, what kind of mortgage makes sense for you?  

Need that question answered? Reach out today and let's discuss your needs. 

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