11. What is a mortgage payment made up of? - Many times you will hear PITI. So what is PITI? It stands for principle (which is the money paying off the loan), Interest (the rent you are paying for borrowing the money), Taxes (property taxes) and Insurance (homeowners insurance).
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12. What are impounds or escrows? - It is when the property taxes and home owners insurance are included in your payment. This is required by FHA, USDA and VA. For conventional loans you will have a slightly higher interest rate if you do not have impounds.
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13. What is mortgage insurance? – It is an insurance that you will mortgage. It is an insurance policy for the lender. Should you default that policy will pay off the loan to the lender. It will not pay you payment! FHA, USDA and conventional loans under 80% loan to value (LTV) require mortgage insurance.
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Keith Woeste
Home Loan Consultant
American Financial Network
330 Tres Pinos Rd.,Ste F3
Hollister, CA 95023
"Making Clients Family for Life"
PH.831-801-8667
FX. 831-665-5260
NMLS#292588
To complete and secure online application go to http://www.hollistermortgage.com
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