When trying to evaluate whether to pay more points to reduce the interest rate on a mortgage, the closing cost mortgage calculator will help fine tune this decisions by evaluating the monthly mortgage payments and annual percentage rate. Generally, the longer you plan to hold the loan or stay in the house, the more pints
Private mortgage insurance (PMI) is usually required when a borrower puts down less than 20% of the home’s purchase price. Its purpose is to protect the lender in case the borrowers can no longer afford their monthly payments and defaults on the loan. PMI provides the lender with at least partial protection for the lender
Provision or clause in a mortgage that allows the lender to demand payment of the entire principal balance and unpaid interest is due if certain conditions have occurred. Conditions will generally a default on the monthly payment, failure to pay real estate taxes, transfer of ownership in the property and others.