I come across many people who are confused or intimidated by the various products or services or even terms commonly used in a real estate transaction, so I thought it would be helpful to add this section to my newsletter. I hope you find it useful, and if you have any particular terms you would like for me to deep dive into, reach out and let me know, it would be my pleasure.
Monthly Mortgage Payment: This is the payment that is withdrawn from your bank account on the same day of each month (i.e. the 1st). You will make 12 mortgage payments in the year. Some people may opt for a weekly or bi-weekly mortgage payment, in which case they will make 52 or 26 payments a year.
Your mortgage payment is made up of your principal amount – this goes directly against your mortgage amount and also an interest portion, which is the cost of having the mortgage. Together the principal and interest portion make up your monthly mortgage payment.