Qualifying for a mortgage is a major accomplishment as buying a home is oftentimes the largest purchase one will make. Spending time to understand the following key points regarding mortgage payments is a great start.
- Some mortgage payments will include your property or real estate taxes
- If your down payment is less than 20%, you will be required to purchase mortgage insurance
- If you can afford to make a larger down payment, it will automatically increase the equity in your home
- More interest is paid in the early stages of a mortgage, where the later stages of a mortgage is goes towards principal balance
- Principal and interest payments are the two components of your mortgage.