Common Mortgage Terms for First-Time Home buyers

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Introduction

• When buying a home for the first time, you will
  come across different terminologies in the
  process. Some of these terminologies you may know
  while some you may find it hard to understand.
  This presentation will help you understand the
  terms that will help the homebuyers during the
  mortgage process.

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• Mortgage Terms To Know

• 1 PITIA
• The term PITIA might sound confusing. However, it
  is the abbreviation for,
• Principal The unpaid balance amount on your
  loan at any time is your principal.
• Interest - Percentage of money your mortgage
  lender is charging against the loan.
• Taxes Taxes such as property tax are considered
  as a part of your mortgage payment.
• Insurance Required to ensure that the house can
  be rebuilt in case of a natural disaster.
• Association Dues Dues included in your payment
  if you are moving into a condo with a homeowners
  association.

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• Mortgage Terms To Know

• 2 Annual Percentage Rate
• Also known as APR.
• It includes the basic interest charge and the
  fees of the mortgage lender for other closing
  costs.
• 3 Term
• It is the time required to pay your loan off if
  you make regular payments.
• To calculate the term, you must consider a
  minimum principal and interest payment every
  month.
• The longer the term, the higher the rate of
  interest.

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• Mortgage Terms To Know

• 4 Fixed and Adjustable-Rate Mortgage
• In Fixed-Rate Mortgage (FRM), only taxes
  fluctuates and the rate remains the same
  throughout the term.
• In an Adjustable-Rate Mortgage, the rate is
  fixed to lower rates compared to FRM.
• 5 Amortization
• It is the amount of principal and interest paid
  every month over the term.
• You can either make normal payments or pay extra
  every month towards the principal amount.
• This will help you save on interest on your loan.

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• Mortgage Terms To Know

• 6 Titles and Deeds
• Title -
• o A title is proof of ownership.
• o It has a physical description of the home and
  land you want to buy.
• Deed -
• o A deed is an actual document that you get
  during the closing.
• o It states that the property is yours.

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• Facing the terms for the first time when you
  dont know what they mean might leave you
  nervous. Being a trusted mortgage lender in MA,
  we have loan officers that guide you throughout
  the mortgage process.
• To read more on mortgage terms click here
  https//www.drewmortgage.com/common-terms-you-shou
  ld-know-before-applying-for-mortgage/

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DREW MORTGAGE BRANCH OFFICES
Drew Mortgage Associates 196 Boston Turnpike
Road Shrewsbury, MA 01545 Phone
508-753-1656 Website https//www.drewmortgage.com
/
Peabody Mortgage Lenders 1 Mt Pleasant
Drive Peabody, MA 01960 Phone [phone]
Boston Mortgage Lenders 232 Commercial St Boston,
MA 02109 Phone [phone]
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