mortgage simple definition: Breaking Down Your Monthly Mortgage Payment

Breaking Down Your Monthly Mortgage Payment

Breaking Down Your Monthly Mortgage Payment. How do interest rates affect your mortgage payment?

Breaking Down Your Monthly Mortgage Payment video duration 2 Minute(s) 24 Second(s), published by Pujals Team on 04 03 2019 - 18:41:46.

Hi, Jerry Pujals here with the Pujals Team, Coldwell Banker Brokers of the Valley
When people buy a home, they are always very conscious of keeping their Welcome to 3-Minute Real Estate! In this first of the series, we discuss what gets paid by your home payment
It's more than you think!

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Hi, Jerry Pujals here with the Pujals Team, Coldwell Banker Brokers of the Valley. When people buy a home, they are always very conscious of keeping their monthly mortgage payment within a certain range. However, many times they forget that a mortgage payment involves much more than just principal and interest.

Today, my good friend, Hilda Hensley, from Benchmark Mortgage is here to break down everything to expect in your monthly mortgage payment.

Benchmark representative: Hi everyone. I’m Hilda Hensley. In addition to the loan’s principal and interest, here are some other things you need to account for in your monthly mortgage payment:

• First, taxes! Your property taxes will be escrowed with your mortgage payment. That means each month you’ll pay a portion of your yearly tax bill with your regular monthly mortgage payment. Your lender will hold that tax money in an escrow account on your behalf and pay the tax bill when it comes due.

• Next, homeowners insurance. Just like taxes, a portion of your yearly homeowner’s insurance premium gets paid with your regular mortgage payment and will be escrowed too.

• Finally, mortgage insurance. If your down payment was less than 20% of the purchase price, your lender will require private mortgage insurance, also called PMI. This protects the lender’s interest in the property in case you ever default.

So as you think about how much house you can afford, remember to factor in all the needed elements of your potential monthly mortgage payment.

Jerry: Thanks, Hilda.

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Thanks so much for watching. I’ll see you next time!