Archive for mortgage

What would the United States of America be without its taxes?   The same thing goes for your home mortgage. Not only does it require its property taxes, it needs insurance as well.

The total monthly payments are often referred to as the PITI. These initials stand for principal, interest, taxes, and insurance.

Property taxes: Our Arizona property taxes go towards schools, libraries, emergency services, and other governmental services. There is no way around them.

Each monthly mortgage payment may include a prorated portion of the annual property taxes that you owe.

For example, if your annual taxes are $2,200, each of your monthly payments may include $200 of property tax, in addition to the principal and interest. Sometimes, you may pay your property tax payments directly without having them included in your mortgage payment.

Insurance: It has become almost a standard requirement for the homeowner to purchase homeowner’s insurance. This insurance may cover both the home and its contents in the event of a flood, fire, or other damage. Usually you, as the homeowner, should purchase insurance from a separate insurance firm.

Additionally, if you can’t afford a down payment of at least 20% of the purchase price, you will probably have to buy private mortgage insurance (PMI). This insurance protects the lender if the buyer defaults on the mortgage. PMI may add $50-100 or possibly more to the monthly mortgage bill. has a monthly mortgage calculator to help with giving you an idea of what you may have to pay.

Always consult your lender or financial consultant regarding any mortgage related questions.

For any other questions, you can contact us at or 602.687.9933 .

Unless you have been left with truckloads of money by your deceased Uncle Sal, you will need to pay a down payment and get a mortgage.

A down payment is a percentage of the total purchase price of the home. The mortgage loan is the money used to cover the rest of the expense of buying the home.

Mortgages work as follows:

  • Loan: A lender, such as a bank, agrees to lend the home buyer an amount equal to the difference between the down payment and the full purchase price of the home.  The amount of the loan is called the pricipal.  If a home costs $100,000 and the buyer pays a 20% down payment of $20,000, the pricipal is $80,000.
  • Repayment: The buyer must repay the lender over time through monthly mortgage payments. These payments typically pay down the principal plus interest. If the buyer fails to pay the mortgage, the lender can foreclose on the house, taking it back from the buyer.

Frequently, lenders today expect a 20% down payment of the total purchase price. Ask your mortgage adviser if there are any special mortgage programs available to first time homebuyers. Some first time homebuyers are eligible for a FHA (Federal Housing Administration) loan. These types of loans require down payments of just 1-3%. Talk with your lender, find out your best options, and you will better informed of the type of loan that best suits you.

For any questions on mortgages or financial matters, consult your mortgage and financial adviser.

For any other real estate questions, contact us at or 602. 687.9933.

Phoenix real estate, residential,Phoenix homes, first time homebuyers