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Common Mortgage Terms for First-Time Home buyers

It becomes difficult for the first-time home buyers to understand the mortgage terms. As a result, you might get confused about what should be the next step. We have guided the first-time home buyers to get the mortgage and provide answers to their questions. Hereu2019s a presentation that will help the home buyers understand the common mortgage terms during the mortgage process. For more details visit : https://www.drewmortgage.com/common-terms-you-should-know-before-applying-for-mortgage/

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Common Mortgage Terms for First-Time Home buyers

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  1. 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

  2. ❖ ❖ Mortgage Terms To Know #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.

  3. ❖ ❖ Mortgage Terms To Know #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

  4. ❖ ❖ Mortgage Terms To Know #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

  5. ❖ ❖ Mortgage Terms To Know #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

  6. ● Facing the terms for the first time when you don’t 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-should-know-before-applying-for-mortgage/ 4

  7. DREW 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

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