Understanding Home Loan Durations
Home loan durations typically range from 15 to 30 years.
You’ll choose a term that suits your financial goals and budget.
Your monthly mortgage payment consists of:
Principal: The original amount you borrowed for the home.
Interest: The cost of borrowing money.
Taxes: These are property taxes paid to your local government.
Home Insurance: Covers incidents like damage, theft, and liability.
Note that homeowners association (HOA) fees are separate.
HOA fees are an annual payment directly to your subdivision’s management company.
They cover shared community expenses (like maintenance, amenities, and landscaping).
When you choose a lender, they’ll assess your financial situation.
Factors include your income, tax returns, and debt ratio.
If you qualify, they’ll provide aprequalification letter.
This letter helps you make an offer on a home.
Note: The results shown are estimates only and do not include all factors. Speak with a licensed agent or loan provider for exact details. This tool is sourced from CloseHack.
