Description
A Practical Guide to Understanding Mortgages and Buying a Home in the U.S.
Mortgages can feel complicated because the process combines lending, property evaluation, contracts, title work, insurance, disclosures and closing requirements.
Understanding Mortgages breaks that process into clear stages so home buyers can understand what is happening and what questions to ask along the way.
The guide presents the journey in five broad steps: prepare, shop, find, underwrite and close. It also explains that state and local practices can differ when it comes to contracts, attorneys, escrow, title work, transfer taxes, recording and when buyers receive their keys.
Learn What a Mortgage Really Is
The guide explains the basic structure of a mortgage, including:
- principal
- interest
- repayment term
- fixed and adjustable rates
- amortization
- the promissory note
- the lender’s lien on the property
It also explains that a homeowner’s total monthly housing cost may include more than principal and interest. Property taxes, homeowners insurance, mortgage insurance, flood insurance and HOA dues can also affect the monthly amount.
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