Mortgage terms can be straightforward, like fixed-rate mortgages, but sometimes they can be trickier. We can’t stress enough how helpful it is to work with a loan officer who knows their stuff. And we just so happen to work with the best. Remember, when we’re your agents, our connections are your connections.

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Here are some common mortgage terms and their meanings:

1. Principal: The amount of money you borrow to buy your home.
2. Interest: The cost of borrowing money from the lender. This is typically expressed as an annual percentage rate (APR) and can vary depending on the lender, your credit score, and other factors.
3. Down payment: The amount of money you pay upfront when purchasing a home. Typically, this is a percentage of the home’s total purchase price.
4. Amortization: The process of paying off a loan over time with regular payments. With a mortgage, this means making regular payments over a set period (usually 15 or 30 years) until the loan is fully paid off.
5. Term: The length of time over which you make regular payments. This is usually the same as the amortization period.
6. Fixed-rate mortgage: A type of mortgage where the interest rate stays the same for the entire term of the loan. This can make it easier to budget and plan for your payments.
7. Adjustable-rate mortgage (ARM): A type of mortgage where the interest rate can change over time. This can be a good option if you expect interest rates to decrease in the future, but can also lead to higher payments if rates increase.
8. Private mortgage insurance (PMI): If you make a down payment that is less than 20% of the home’s purchase price, your lender may require you to pay for PMI. This is insurance that protects the lender in case you default on the loan.
9. Closing costs: The fees associated with buying a home, such as appraisal fees, title fees, and attorney fees. These costs can add up quickly, so it’s important to budget for them when planning to buy a home.

We hope that helps! Let us know if you have any other questions.

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