Determining Your Mortgage Payment
Money is usually near the top of the list of concerns when it comes to buying a home. How much does it cost? How much is a down payment? How much will my monthly payment be? It’s completely natural to wonder those things, and when you decide to buy your new home, these are all topics of conversation to have with your lender.
For now, though, we wanted to give you some insight into how your monthly mortgage payment is determined. There’s actually a formula that lays out how a lender sets your payment, so let’s break it down.
There are four factors that play a role in the calculation of a mortgage payment: Principal, Interest, Taxes, and Insurance (PITI).
We know how important it is to educate potential borrowers and offer assistance in all stages of the home buying process. That’s why we’re making it as easy as possible for you to see what your potential monthly payment might look like. If you’re interested in crunching some numbers, check out our mortgage calculators.
Get your home loan lesson plan
While it may start with an email address, our goal is to secure you a new home address. It’s simple with your personalized Lesson Plan. Every step of your journey is covered so you know what to expect, when to expect it and are always up to date. It’s the perfect place to get started.