Mortgage Terms

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The mortgage industry has many unique and confusing terms and acronyms. We hope these descriptions help you to better understand the lending process.

Team Souther Glossary

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There are 2 names in this directory beginning with the letter T.
Temporary Buydown
Borrowers can pay discount points to buy down their rate for a limited time instead of permanently. On a 3-2-1 buydown, the borrower's interest rate drops 3 percent below the note rate for the first year, 2 percent for the second year and 1 percent for the third year. The start of the fourth year marks the first year the borrower pays at the regular, full note rate.

Title Insurance
This is mandatory insurance that protects borrowers, sellers and lenders against previous ownership claims on a property. Title insurance must be paid at closing. Buyers can shop around for the best price.

Mortgage Calculator

Purchase price
Please enter here the amount you expect to pay for a home.
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Down payment
Down payment is cash that you pay upfront for your home.
20.0%
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Term in years
Number of years you have to pay.
years
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Interest rate (per year)
The percentage of interest that you will pay on your mortgage for a specific term.
%
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Property tax
Enter your property tax here if you know it.
per year
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Home insurance
Most lenders require home insurance. Enter its price here.
per year
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PMI
PMI is Private Mortgage Insurance which is usually required to pay if your Down payment less than 20%.
per month
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Your total monthly payment


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Principal & Interest
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Home insurance
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Property taxes
$
PMI
$