What’s included in a mortgage payment?

If you’re buying your first home, it might seem like going from paying rent to paying a mortgage is merely switching out one monthly bill for another.

But rents and mortgages differ on a couple of levels. For one, mortgage payments contribute to your stake in the home. The more payments you make, the more of the home you legally own.

The other major difference is what a mortgage includes. While rent is simply a once-a-month fee, a mortgage payment comprises what is known as PITI.

That acronym stands for:

  • Principal: This portion of your payment goes toward the total balance of your mortgage loan, without any other charges. 
  • Interest: This is the extra cost of financing your home. Your interest rate (which is set when you apply for the loan) determines how much interest you pay annually.
  • Taxes: As a homeowner, you’ll need to pay property taxes. These are typically paid monthly as part of your mortgage, and they could be included in your escrow account.
  • Insurance: Your homeowners insurance policy, which can also be paid using escrow, protects your home from weather damage, theft and other potential issues. If you require private mortgage insurance, that will add to your monthly costs as well.

If you’re considering buying your first home, it’s essential that you understand what goes into a mortgage payment — as well as how you pay off that loan year over year.

And don’t assume that all of the monthly fees add up to more than your rent, especially when you consider the equity you’ll be building.

Want to learn more about the costs you can expect when purchasing a home? Get in touch today if you have questions.

Approved Mortgage Expands Workforce with New Licensed Loan Officers

Approved Mortgage, Central Indiana’s largest and oldest locally owned mortgage company, makes key additions by adding new licensed loan officers to its team of over 30 experienced mortgage originators.

Greenwood, IN, May 24, 2019 –(PR.com)– Approved Mortgage, a trusted lender for over 20 years, announces the addition of new loan officers to its team that are successfully licensed to originate mortgages.

Hannah Lutgring has been promoted at Approved Mortgage as a Loan Officer where she will help homebuyers and homeowners with purchase and refinance mortgage transactions. As a licensed mortgage banker, she joins Central Indian’s largest and oldest locally owned mortgage company. Prior to being promoted, Lutgring spent 6 years with the company as a Junior Processor committed to loan approval where she served a very important role in the prepping and organizing of loan files.

“Hannah is a key addition to our team,” said Derrick Christy, CEO of Approved Mortgage. “As a licensed originator with extensive processing experience, she will be able to easily guide the borrowers and realtors through the entire real estate transaction with exceptional wherewithal that will be beneficial to getting the loan approved and cleared to close faster.”

Sarah McGrath has been promoted at Approved Mortgage as the newest licensed Loan Officer to a team of over 30 experienced mortgage originators that have been with the company an average of 10 years. She will be responsible for fostering lasting relationships with clients and the real estate community through purchase, refinance, and reverse mortgage transactions. Prior to becoming a Loan Officer with the company, McGrath has been with the company for more than 2 years as the Executive Assistant and will continue this role in addition to becoming a Loan Officer.

“I’ve worked directly with Sarah for the past several years,” said Christy. “She is a great representative of our company’s core values and her versatile skill set she demonstrates as an Executive Assistant will translate into providing her clients with a faster and more stress-free mortgage experience.”

The addition of Lutgring and McGrath as licensed Loan Officers reinforces the mission of Approved Mortgage to serve the mortgage needs of borrowers and realtors through communication, reliability, and value. The company continues its commitment to loan approval for its clients and closes home loans in just 19 days.

About Approved Mortgage

Approved Mortgage is the largest and oldest locally owned mortgage banker in Central Indiana with over 5 billion funded for Indiana families. As an industry leader for over 20 years, Approved Mortgage is recognized by Zillow® as a 5-star lender, rated a Top 20 Broker by Expertise®, and ranked by Entreprenuer.com® as one of the top 25 Best Small-Company Cultures. Approved Mortgage is a direct lender with in-house underwriting that allows for same day approvals. We provide a vast array of residential mortgage loans that has served thousands of families making their dream of home ownership a reality. Our residential product line includes conventional, jumbo, FHA, VA, reverse mortgages and portfolio loans for purchase, refinance, and construction transactions. We also offer a variety of commercial real estate loans for multifamily, office, retail, warehouse/flex space, as well as business loans including SBA, lines of credit, credit card merchant services accounts, and factoring. We look forward to assisting you with your mortgage loan needs by delivering just the right product you need and with the service you deserve. Approved Mortgage has served thousands of satisfied clients and is an A+ accredited member of the Better Business Bureau.