How Do You Understand Mortgage Home Equity Loan Terms?
For those that are buying a property, mortgage home equity loan terms offered by the bank are things you must have a good understanding of. This is especially true for first time buyers because they have limited experience in this process. A good understanding of mortgage home equity loan terms can help you pick the right one for your situation that benefits you the most. PITI – principle, interest, taxes, and insurance. This is your monthly mortgage that you will pay each month for the next 15 or 30 years depending on your mortgage term. The principle is the amount of money borrowed from bank without any interest. The interest is calculated based on an interest rate that the bank approved you for at the time of purchase. Taxes are the property taxes that you will have to pay every month; this is depended on your original purchase price. Insurance is the insurance you buy for the property that you live in. This is a very important part of the mortgage home equity loan terms that you sh
