When calculating the monthly mortgage payment for new home purchase be advised that you may be required to pay private mortgage insurance depending upon the size of the down payment. Mortgage insurance requirements and costs will depend on the loan-to-value ratio. This ratio is computed as the value of the loan divided by the value
Prepayment penalties are penalties for paying a home loan off very early in the term. Most home loans do not carry prepayment penalties but for those that do, can be costly. The penalty is generally a percentage of the outstanding loan balance. Most prepayment penalties are for three years but some run as long as
The ratio of mortgage amount to appraised value or sales price of real property. Mortgage lenders establish loan to value ratios to determine the percentage value of the property the lender ios willing to finance with a home mortgage. Used by lenders to determine maximum loan amounts set by secondary market investors and/or government insuring