HOME LOANS, MADE PERSONALPayment: what is included?
Separate principal and interest from taxes, insurance, mortgage insurance and HOA dues. Ask which costs are escrowed and which you would pay directly.
AHL HOME / LOOK AT THE WHOLE LOAN
LOOK AT THE WHOLE LOAN
Compare the loan. Keep your life in view.
A useful comparison puts the same assumptions on the same page. Look at payment, upfront costs, repayment time, and what could change.
MAKE ROOM FOR THE FULL COMPARISON
Four things to put side by side.
Payment. Costs. Time. Certainty.
Understand the tradeoffs together.
Upfront costs: where does the money go?
Compare origination charges, points, third-party costs, government charges, prepaid items and escrow deposits. Lender credits may reduce upfront costs in exchange for a higher rate.
Time: how long are you borrowing?
Look at the term, balance reduction and total interest. A lower payment may reflect a longer repayment period. Consider how long you expect to keep the home and the loan.
Certainty: what can change?
Review fixed versus adjustable rates, rate-lock terms, payment adjustments, prepayment penalties and balloon features where applicable. Ask for explanations in writing.
Start with two scenarios.
Keep the assumptions consistent and see how a different amount, rate, or term changes the result.
YOUR NEXT CHAPTER. YOUR PACE.
Make the next step
a useful one.
You bring the reason.
Start shaping the plan.
