mortgages buyer agent – Home Buyer Programs: Break-down Of A Mortgage Payment
Home Buyer Programs: Break-down Of A Mortgage Payment
A mortgage payment typically consists of principal and interest; some people also pay escrow for property taxes and insurance. There may also be an additional charge for PMI or private mortgage insurance.
Most people are surprised at how much of their payment is applied to interest and how little is applied to principal. In fact, the largest part of your mortgage payment is likely to be interest early in the loan.
How it Works
Your mortgage payment break-down is always based on your principal balance; if you purchase a home and your beginning mortgage balance is $100,000, the interest rate is 7.5% and your monthly payment is $700.00 then your first payment will be applied as follows:
$625 is interest
$ 75 is principal
Calculated as follows:
Mortgage balance ($100,000) multiplied by interest rate (0.75) = $7,500 to get annual interest. $7,500 divided by 12 = $625 to calculate interest for one month.
The new principal balance is reduced by the $75 applied to principal, leaving a balance of $99,925. Each month’s mortgage payment is calculated based on a lower principal balance; therefore, less interest is charged each month.
Equity
When you pay down the principal balance on your mortgage, you are building equity in your home. Some homeowners choose mortgages with shorter terms and larger payments to build equity faster.
Considering the amount that is applied to interest early in the game, many homeowners choose to make larger principal payments as soon as they can to reduce the loan balance. Shorter loan terms are not for everyone; be sure to talk to your real estate agent and loan officer about what options are available to you and which one would suit your individual needs.
By: Mark Goedert
Article Directory: http://www.articledashboard.com
Mark Goedert of Goedert Real Estate specializes in working with first-time homebuyers. He assists his clients in choosing th
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e right home and the financing that works best for them. Home buyers who work with a Goedert agent are well prepared to make great decisions based on advice from an experienced real estate professional. Visit www.under100000realestate.com/ to learn more.
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As you start your quest in purchasing a home in Miami real estate, you might consider searching for a real estate agent or realtor.
In looking for a real estate agent, make sure the agent is a buyer’s agent. Buyer’s agent is a real estate agent that represents the buyer for the transaction in Miami real estate. Buyer’s agent can definitely help you in looking for the right property in Miami real estate. Indeed, the agent can assist you in your buying process.
The buyer’s agent can help you in determining how much house you can afford to purchase. The agent will ask you your annual income, and from there, the agent can make estimation, the agent can determine if you will qualify for a mortgage.
Your agent can direct you to several lenders. The agent can even recommend you to a mortgage consultant in order for you to have a pre-approved mortgage. In having pre-approved mortgage, it can help you determine on how much you can afford in purchasing property. And it can help speed-up the buying process. Since sellers prefer buyer who are pre-approved for a mortgage.
If you are planning to purchase property in Miami real estate, then the buyer’s agent with search all the homes on the market and narrow it down basing on the features and budget you have mentioned to the agent. So the real estate agent will give you limited lists of homes that meet your wants and needs.
The agent can make schedules in order for you to make some tour to the properties. And if you have questions about the properties during the tour, the agent can help you find the answers to all your questions.
If in case, you want to remodel the property you will purchase, the agent can also help you out, the agent can provide names of contractors that can do the work for you.
The buyer’s agent can help you in negotiating with the sellers. The agent will help you making offers. Agents are good in the world of real estate, they know how to handle things in the real estate world, and they know how to deal with the sellers. So the agent can help you find ways in making offers, multiple offers and with contract deadlines.
A buyer’s agent can help you in selling your existing home, find a new home in Miami real estate, having home inspection done and making pre-approved mortgage done.
Yes, a real estate agent can be helpful in finding a new home in Miami real estate.
So if you are planning to purchase a property, you might consider hiring a real estate agent. But in hiring a real estate agent, make sure that the agent is a realtor. A realtor is a member of National Association of Realtors. In doing this, you will be assured that the agent is fully licensed.
If you want to make sure that the buying process will run smoothly, especially if you are a first time buyer, you search for a real estate agent or buyer’s agent. The buyer’s agent will help you out in purchasing the right property in Miami real estate. So start searching for an agent now.
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