Understanding Your Home Loan: Robins Financial Credit Union

Buying a home is a big, exciting undertaking! As you begin your planning
and learn more about mortgage loans, you will hear a lot of terms that may be unfamiliar. As your guide through the mortgage loan process, Robins Financial wants to make sure you have a clear
understanding of the key parts of a mortgage loan. In this video, we’ll break down the various
upfront and ongoing costs involved in buying a home. First, there’s your Down Payment: This amount depends on how much upfront cash
you would like to put towards the purchase price of your home. The more you put down, the less you have to borrow. Your mortgage loan officer at Robins Financial can guide
you through the different programs available to you, and whether you may qualify for 100% financing –
where you won’t have to come up with a down payment. You’ll also have Closing Costs: These are
one-time fees paid in order to close the loan. They include origination fees, title insurance,
attorney fees and more. However, with the first time homebuyer program
at Robins Financial, you will benefit by paying less fees. You won’t have to pay an appraisal,
credit report, or underwriting fees. This ensures that you will have lower
closing costs compared to other lenders. Every month you will have a Mortgage payment,
which is made up of principal, interest and escrow. Principal is the amount from your payment that goes to
pay back the total amount that was borrowed to purchase your home. Interest is a part of your payment determined
by the interest rate you receive with your loan. The better credit you have, the lower your interest rate,
and in turn, the lower your mortgage payment. And escrow is the part of your payment that is collected
to pay the annual real estate taxes, homeowner’s insurance, and PMI or Private Mortgage Insurance. PMI is necessary until you have paid down
a sufficient amount of your principal to own at least 20% of the equity in your home. After that point, you can drop the PMI
and lower your monthly payment. If you decide not to escrow your real estate taxes
and homeowner’s insurance, you’ll need to make sure that you save enough money
throughout the year to pay these annual fees. Understanding these terms will give you the
basic understanding of your mortgage loan. But whenever any questions come up, be sure
to ask your loan officer at Robins Financial, to make sure you understand all the details! For more information, call, click,
or visit any of our branch locations.

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