Mortgage Terms Translated
into Real People Words
Your mortgage amount will be the sales price of your home minus your down payment.
This is how long you wish to finance your home. You typically have options of10, 12, 15, 20, 25, or 30 years.
Your interest rate is based on your credit, and what type of loan you choose.
PMI is private mortgage insurance, paid on conventional loans until you have 20% equity in your home.
MIP is mortgage insurance premium paid out on loans such as FHA, and will be paid through the life of the loan.
Homeowners insurance varies on the type of insurance you carry. Flood insurance is typically a separate policy whether the property location requires it or not.
This will be based on the annual taxes divided by 12 months.