The principal is the amount of money you borrowed.

If you’ll excuse the pun, let’s start with the principal. Your principal is the amount of money your mortgage loan is for—aka how much money you borrowed to buy your home. It’s the most important number in your mortgage and it’s literally the first thing that appears on a mortgage statement:

Principal: $500,000

Interest is the cost of borrowing money from the bank.

So we’ve covered the basic structure of a mortgage. But what exactly are you paying for with each payment you make? The answer is simple: you’re paying back the loan that was given to you at the time of your mortgage. As well as this, you’ll also be charged interest which is calculated on a monthly basis.

The amount of interest that you pay depends on a few key factors:

• Your credit score
• The size of your mortgage
• The interest rate that’s applied to your loan

The prime rate is tied to Canada’s overnight lending rate and will vary over time. Your bank will set its prime rate based on this, plus an additional percentage which can range from 0% – 3%. Here’s how it all works:

There are two main types of mortgages when it comes to interest rates – fixed or variable.

Servicing fees are charges for services related to your mortgage loan, not the interest you pay on your monthly payment.

One thing that can be confusing when paying a mortgage is the term “servicing fees.” Servicing fees are charges for services related to your mortgage loan, not the interest you pay on your monthly payment. Your servicing fee might include things like maintenance and repairs or billing services, and will typically be paid monthly. The difference between servicing fees and interest is that servicers tend to keep servicing fees for themselves as opposed to passing them on to investors like they do with interest payments.

Your monthly payment includes principal, interest, taxes and insurance.

Your monthly payment includes principal, interest, taxes and insurance (also known as PITI).

• The principal is the amount you borrow.
• Interest is the cost of borrowing money.
• Property taxes are a local tax based on your jurisdiction’s rate and your property’s assessed value. This value can sometimes be lower than your home’s market value. If you’re in a new development, for example, assessed values may still be relatively low until the neighborhood builds up over time. Reference our article on how property taxes work to learn more about this process. In most cases, these taxes will increase as you improve or add onto your home—a reason why owners might choose to stay in their homes longer now that they have more equity in them.
• Insurance protects your home from damage or loss. It’s important to note that many lenders require mortgage insurance if you make less than 20% down on your home purchase; this is often required if you’re within three years of filing for bankruptcy as well. And keep in mind that mortgage insurance is different than regular homeowner’s insurance: it protects the lender should something happen to the borrower (you), not the other way around!

You don’t want to be under-insured or over-insured when it comes to homeowner’s insurance.

It’s important to remember that there are two kinds of property insurance policies for homeowners: HO-3 and HO-5. An HO-3 policy covers your home from perils such as fire, theft, explosion, smoke damage and vandalism. The only perils not covered by an HO-3 policy are floods, earthquakes and mold. An HO-5 policy is more comprehensive than an HO-3; it covers both the dwelling and the contents of the home. It also provides some form of coverage for things like computers and business property as well as personal property away from the home while on vacation.

Because your house typically increases in value over time — either because you make improvements or because you regularly maintain it — you’ll have to periodically update your homeowner’s insurance coverage to make sure that everything is properly insured in case disaster strikes. Most homeowners review their coverage every year at renewal time, but you can also request a reevaluation at any point if necessary (such as when new construction takes place near your house). You are usually eligible for a refund of premiums or credit toward future renewals if your insurer finds you were being overcharged due to insufficient coverage.

Appraisals are conducted by a professional appraiser.

An appraisal is an unbiased estimate of the value of a property, conducted by a professional appraiser. The appraiser looks at the condition and features of your home, then compares it to similar properties in your area that have sold recently. If you’re wondering how much your home is worth, or if you want to rebuild it after a disaster like fire or flood, an appraisal will help determine its rebuilding cost.

Property taxes are based on tax rates in your locality and how much your property is worth.

Another cost home buyers should keep in mind is property taxes. This amount is determined by tax rates in your locality and how much your property is worth. The market value of your home, usually set by a county assessor, is the most important factor in determining property taxes. While assessed value isn’t exactly the same as market value, it’s close enough that you can use it as an estimate when forecasting a budget.

Property tax rates are set by local governments like counties, cities or townships. These rates can vary widely from one place to another, so if you’re trying to figure out what your property taxes will be down the road, start by checking out information on where you live at the county website or tax assessor office.

The amount of money charged for these types of taxes must be paid annually or bi-annually (i.e., twice per year). If you feel that you’re being overcharged for this rate due to human error or other discrepancies, it may be possible to appeal them with the help of a professional tax attorney or accountant who specializes in this area.

Closing costs are one-time costs that may be paid at closing.

What are closing costs? Closing costs are one-time costs that may be paid at closing. The costs vary depending on the purchase price of the home. Typically, they’re in the 2 to 5 percent range of the purchase price but can be higher or lower depending on real estate market conditions and your location. Examples of these types of fees include appraisal fees, lender’s title insurance (which protects the lender if you default), attorney fees and inspection fees.

Do I have to pay closing costs? Yes, even if you are paying cash for a house, you will have closing costs. These include title search to verify there are no liens against the property and tax stamps issued by county governments recording ownership and transfer of ownership.

Tip: Closing costs are negotiable! Depending on where you live, they must be disclosed by law so know what they consist of before going into negotiations with a seller or listing agent representing one.

Assets include savings accounts, IRAs, stocks, bonds, mutual funds and other investments you personally own.

An asset is anything that you own, that has monetary value.

Your assets include savings accounts, IRAs, stocks, bonds, mutual funds and other investments you personally own.

If you have real estate (primary residence or investment property), precious metals or a business in your name, these are also considered assets.

Life insurance policies and collectibles such as antiques, cars, jewelry and artwork are all considered assets.

One of the main factors in determining your mortgage is the loan-to-value ratio that lenders use to assess the risk of lending you money.

When you are buying a home, the loan-to-value ratio is one of the main factors that mortgage lenders use to determine how much money they will be willing to lend you. The loan-to-value ratio is calculated by dividing the value of a home minus any closing costs and your down payment by the price of the home. If you are putting a 20% down payment on a $200,000 house, it would look like this:

= ($160,000 – $40,000)/$200,000

= 70%

In general, as your loan-to-value ratio gets higher (meaning you have less money for your down payment), lenders assume that there is more risk that you will default on your mortgage because you have less equity in your home. If the market value of homes falls after you buy and your equity in the house drops below what you owe on it (this is called being “underwater”), it’s more likely that people will stop making their monthly payments because they feel like they have nothing to lose from walking away from their mortgage. To compensate for this risk, lenders charge higher interest rates for loans with high loan-to-value ratios.

A lien gives a person or business an interest in some real estate property until their debt is paid off.

• What is a lien?

A lien gives a person or business an interest in some real estate property until their debt is paid off. If you have a mortgage, it probably includes a lien clause that the lender can use if you don’t pay your mortgage.

If someone puts a lien on your house, they are saying that they think they are owed money that you haven’t paid yet, and they want to hold on to your asset (your house) until the debt is fully taken care of.

Liens are also used as security for other debts, like taxes and homeowner association dues.

• How to get a lien released

The first step is always to pay off whatever debt got you into this situation in the first place. When that’s done, contact whoever put the lien on your house—whether it’s a company or government agency—to ask for the release or for more information about how to get one. They’ll typically give you forms to fill out and send back when everything’s been settled. Sometimes there may be separate form fees involved too with this step of the process and getting them filled out correctly so… definitely check with whoever placed the original lien!

Understanding mortgages and foreclosures can help you make smart decisions about getting one and keeping yours.

Now that you understand credit and credit scores, the next step is to understand mortgages. This guide will walk you through the basics of mortgages, including how they work, how they’re calculated and financed, and how they can be used to help you buy a house.

What is a Mortgage?

A mortgage is a loan that you take out to buy a home. You promise to pay back the loan over time with interest (the money it costs for you borrow the money). The principal is the amount of money you borrowed in your loan.Whether you’re purchasing a home for the first time, or have recently received a mailer with a new offer to refinance your mortgage, it can be difficult to know where you stand.

Don’t worry! Here are some of the most common things homeowners ask us about their mortgages, along with explanations and tips on how to make your home work better for you.

So you finally did it! You made a down payment, signed the dotted line and now you can call yourself a homeowner. But what does that really mean? In this blog post, we will break down the fine print of your mortgage and give you some tips on how to make your house feel like a home!

Congratulations! You are a homeowner. This may be your first home, but it probably won’t be your last. Whether you live in a condo or a house, whether you own the land under your home or lease it from a housing association, you have entered into a deal that is supposed to benefit both you and your lender.

How does this deal work? What are the terms of the agreement? Who gets what out of it, and who is ultimately responsible for paying back the money that was used to purchase the property?

In this article, I’ll explain exactly how mortgages work from start to finish. I’ll also cover some basic tips on how to improve your home so that it will last for years to come.

The day has come and you have purchased your first home. You may be exhausted from the paperwork, inspections, and negotiations, but the finish line is in sight! You are nearly ready to move in. But you still have one major hurdle left to cross: your mortgage.

If you are like most people, understanding your mortgage will require a bit of research and education. Luckily for you, we are here to help! We will take you through the process step by step so that you can move into your dream home with confidence.

In this article, we will discuss:

What is a mortgage?

What types of mortgages are available?

How do I qualify for a mortgage?

When it comes time to choose which type of mortgage best suits your needs, it is important that you know what types are available and how they work. There are many different kinds of mortgages out there so it can be overwhelming at first glance when looking at all of them. However, once you understand some key aspects such as interest rates or fixed vs adjustable payments then things become much clearer!

So what exactly IS a mortgage? It’s essentially just an agreement between yourself (the borrower) and another party (the lender). This agreement states that if you don’t pay back money

You’ve just bought your first house. Congratulations! You’re probably still in shock from the whole process, but you’re so happy. Your home is safe, and you’ll never have to pay rent again.

But wait… you will have to pay for your home. Monthly, in fact. Oh, and there’s this thing called “principal,” and you have to pay that, too. And what the heck is “amortization”? Don’t worry; we’ll explain it all right here!

Your First Mortgage

So, what exactly is a mortgage? A mortgage is a loan that you take out from a bank or other financial institution to help you buy a house. You provide the bank with a certain amount of money up front (your down payment), and they give you the rest of the money (via a loan) that you need to buy the house. Then, you pay back the bank over time. The bank also charges interest on this loan—that’s how they make their money from loaning out all this cash to people like us!

I’m not sure if you’ve heard, but housing prices are rising. In fact, they actually rose by 8.5% in the last quarter of 2016 alone.

If you’re like me, your first thought when you heard that was, “Oh great! Now I can sell my house for a bajillion dollars!” Yes, that’s what I thought too. In fact, it was what I told my wife.

Then she reminded me: “Yeah, but then we’d have to buy a new house.” And that’s when it hit me: Oh yeah… we’d have to buy a new house. So even though our house is worth more than we paid for it, we’re still kind of stuck here… at least until prices rise even higher and we can sell it for an even more ridiculous amount of money.

But since we’re stuck here for now (and probably forever), I figured I might as well learn something about mortgages and home ownerships. So I’ve been asking questions and doing some research online; this blog is my attempt to share what I’ve found with others who also want to better understand home ownership—at least in the form of mortgages. So if you’re interested in learning more about mortgages, or