Which is better: 15- or 30- year loan term?
Property insurance: Protects the homeowner from weather-related damage, as well as potential liability from events that occur on the property.
Other settlement services: Fees paid for services associated with the purchase of a home that do not represent compensation to the lender and/or the broker for originating the loan.
Cost-benefit analysis: An analysis of the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs.
Property Taxes and Homeowner's Insurance: A typical monthly mortgage payment consists of amounts for loan principal, interest, property taxes and homeowner's insurance.
Private mortgage insurance (PMI): An insurance policy that protects lenders against loss if a borrower defaults. Typically required if the loan-to-value (LTV) ratio of the home exceeds 80%.
Origination fee: A lender may charge an origination fee that is additional to any mortgage points you pay. Origination fees are the lender's charge for funding your mortgage with a mortgage broker. The process of funding your loan is called origination.
Tax rates: The percentage of your taxable income that is owed to the state and federal governments. The tax rate increases as the taxable base amount increases.
Term: The period of a loan, generally measured in years. Auto loans generally range from 2 to 5 years. Mortgage loans: 15 to 20 years.
Charge for specific interest rate: An additional charge, expressed as a percentage of the loan amount, to obtain a lower interest rate.
Mortgage interest tax deduction: A deduction for taxpayers who pay interest on home mortgage and home equity loan interest, allowed primarily to encourage home ownership.
Origination Charges: The sum of all fees and charges from origination-related services. This represents all compensation to the lender and/or broker for originating the loan.
Savings interest rate: The yearly interest rate you earn on your savings.
Property tax: A tax assessed on real estate by the local government, usually based on the value of the property (including the land) you own.
Interest rate: The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of money.
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The information provided by these calculators is for illustrative purposes only. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results. The calculated results are intended for illustrative purposes only and accuracy is not guaranteed.