Buying A Home

Mortgage Basics: Mortgage At A Glance

A mortgage is a loan used to finance the purchase of your home. It is one of the largest and most important investments that you’ll ever make.

This is how it works. Your home serves as the collateral for the loan that you agree to pay over 15 to 30 years with interest. Monthly payments typically include the principle (the sum financed by your community bank), interest (the interest charged to you for borrowing money) and taxes (usually community taxes based on a percentage of the value of your home). When you put down less than 20% on the purchase of your home, most community banks charge private mortgage insurance (MI) premiums. This coverage is designed to protect the bank against you not paying your mortgage.

There are many types of mortgages. To find one that is right for you, work with a local bank. Click here to begin this process. (link to application).

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