Home financing can be a critical part of any real estate transaction. Below you will find some outstanding mortgage information that may be able to help you with the purchase of your next home.
Know the amount you are borrowing - this is called the principal amount.
Know the type of mortgage - Is it a fixed interest rate or an adjustable rate or is it a combination of both? Make sure you are aware of the pros and cons for each type and find out which one benefits you the best.
The interest rate - Adjustable rate mortgages can change. Find out the terms of those changes. Before deciding which interest rate works best for you, always take into consideration the APR - annual percentage rate. This rate takes into account the interest rate and the loan's other costs.
Your monthly mortgage payment - Don't forget about those other monthly expenses...food, automobile, insurance, gasoline, etc. Make sure you can afford your mortgage payment including all of your monthly expenses and still live comfortable.