Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance
| The traditional fixed rate mortgage is the most common type of loan program. The total payment amount never changes during the life of the loan. The total payment is comprised of a principal and interest component. These two items move inversely with each other over time. As time goes by the portion of the payment going towards principal will increase while the portion going towards interest will decrease. Fixed rate mortgages are available in terms ranging from 10 to 30 years and in most instances they do not have a prepayment penalty meaning they can be paid off at any time without incurring fees. This type of mortgage is “amortized”, meaning it will be completely paid off by the end of the loan term. |
| The traditional fixed rate mortgage is the most common type of loan program. The total payment amount never changes during the life of the loan. The total payment is comprised of a principal and interest component. These two items move inversely with each other over time. As time goes by the portion of the payment going towards principal will increase while the portion going towards interest will decrease. Fixed rate mortgages are available in terms ranging from 10 to 30 years and in most instances they do not have a prepayment penalty meaning they can be paid off at any time without incurring fees. This type of mortgage is “amortized”, meaning it will be completely paid off by the end of the loan term. |
| The monthly payment on a fixed rate mortgage can comprise not only principal or interest but as property taxes and homeowner’s insurance if you have an “impound account”. In addition, any mortgage insurance premiums (amounts charged to borrowers who put less than 20% down payment when purchasing their home) will be included as well. The additional funds for taxes and homeowner’s insurance are put into an impound or escrow account by the lender who then uses those funds to pay the borrowers’ property taxes and homeowners insurance premium when they are due. If either the property taxes or homeowner’s insurance premium happens to change, the borrower’s monthly payment will be adjusted accordingly. However, overall the payments in a fixed rate mortgage are very stable and predictable. |
| The monthly payment on a fixed rate mortgage can comprise not only principal or interest but as property taxes and homeowner’s insurance if you have an “impound account”. In addition, any mortgage insurance premiums (amounts charged to borrowers who put less than 20% down payment when purchasing their home) will be included as well. The additional funds for taxes and homeowner’s insurance are put into an impound or escrow account by the lender who then uses those funds to pay the borrowers’ property taxes and homeowners insurance premium when they are due. If either the property taxes or homeowner’s insurance premium happens to change, the borrower’s monthly payment will be adjusted accordingly. However, overall the payments in a fixed rate mortgage are very stable and predictable. |
Reach out to me for further detailed information on Fixed Rate Mortgage loan programs.