Obtaining home financing is a complex process with many steps. Choosing the home financing program can be very costly to a home buyer if the right decisions are not made. Estimate how much your monthly payment will be using our home mortgage payment calculator.
Understanding Finance Basics
Interest rate:The interest rate is the percentage of your loan amount we charge you to borrow money.
Discount points:One point equals 1% of your mortgage amount. Points may lower your interest rate.
Origination charge:All charges, other than discount points, that all loan originators (lenders and brokers) involved receive such as fees, document preparation, and underwriting.
Loan term:Your loan term is the amount of time you have to pay off your mortgage balance. Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates and thereby end up costing you less money overall.
Appraisal value, Appraisal value is the market value of an asset that
derived from the
appraisal process. Depending on the asset, the method used to
the asset will differ.
For homes, appraisers often use a method that includes recent sales
of comparable homes.
They may also use the replacement method, which is the cost to
the home at today’s
The cash you deposit towards the purchase of home, car, etc. The
the down payment, the
less you are required to borrow.
The period of a loan, generally measured in years. Auto loans
range from 2 to 5
years. Mortgage loans: 15 to 30 years.
The amount charged, expressed as a percentage of principal, by a
to a borrower for the
use of money.
Property tax (yearly)
A tax assessed on real estate by the local government, usually based
the value of the
property (including the land) you own.
*Assumes 2.799% APR, 20% down payment, and conforming 30-year fixed rate first mortgage on a single family, primary residence. The monthly payment you enter includes only principal and interest. Additional required amounts such as taxes, insurance, home owner association dues, assessments, mortgage insurance premiums, flood insurance or other such required payments should also be considered. Not all individuals will qualify for a mortgage loan based on the payment entered. Rates cited are for instructional purposes only; current rates are subject to change at any time without notice. **Posted APR is based on Mortgage Assumptions.