Understanding the Components of Your Monthly Mortgage Payment

If you’re new to homeownership, you might be wondering exactly what makes up the mortgage payment you’re sending each month. Beyond just the loan amount itself, there are several different components that all factor into your monthly mortgage payment. Understanding these components not only helps you see where your money is going but can also assist you in optimizing your mortgage and possibly securing a better rate. 1. Principal The principal is the amount of money you originally borrowed to purchase the home. It represents the bulk of your loan balance and is paid down over the term of your…
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Newest Home Pricing Data Shows Homes Becoming More Attainable Across The Country

Case-Shiller's 20-city home price index for September reported the lowest pace of year-over-year home price growth in almost two years. Lower home prices balanced housing markets between sellers and buyers, but home prices continued to grow approximately two times faster than wage growth. Case-Shiller's 20 city home price index for September posted a home price growth rate of 5.20 percent as compared to August's year-over-year growth rate of 5.70 percent. While analysts expected slower rates of home price growth, they weren't expecting the steep declines seen in September's report. David Blitzer, Chairman and CEO of the S&P Dow Jones Indices…
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Home Buying Tips: Three Items to Watch out for in a Purchase Agreement Contract

The purchase agreement is a vitally important document that outlines the provisions, terms and conditions for the transfer of property. It should be read carefully and any ambiguities should be clarified prior to signing. It is a legally binding contract between the buyer and seller. The purchase agreement may vary depending on the location. Most real estate agents use a form that has been approved by a state realtors association. The seller may have a different version that was drawn up by an attorney. It should not be assumed that they are all the same. Typically, the purchase agreement will…
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Experiencing ‘Purchase Anxiety’? How to Calm Your Nerves Before Committing to Buy a New Home

Whether this is your first big purchase, or your family is moving to a new location or looking for more space, buying a home has its share of ups and downs. It's perfectly normal to feel anxious about whether or not you've found the right property. Here are some things you can do to make yourself feel more secure with your decision. Do The Math You've probably already done this, but it's okay to go over it a number of times to be sure. Factor in your household income and all the bills you expect to pay every month. Add…
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