Mortgage Facts:
A mortgage is a long-term loan that you get through a bank or other financial institution or even through the seller of the property.  The house and/or property serve as collateral for the loan.

A home mortgage is most likely the largest debt that you will ever take on.  You typically pay off that debt in monthly payments over a long period of time, usually 15 to 30 years.

What Makes Up A Mortgage Payment?
A monthly mortgage payment typically includes:
*Principal
*Interest
*Real Estate Taxes
*Property Insurance and (often) Private Mortgage Insurance

The process of paying off the mortgage takes years because mortgages are based a repayment plan called amortization. During the many years of the mortgage, a homeowner pays money toward interest in order to have manageable monthly payments on the large house debt. During the first few years, most of the mortgage payments will be applied toward the interest. During the final years of the loan, the payments will be applied primarily to the remaining principal.

To estimate how much of a home loan you can afford, use our simple monthly loan calculator on the left!