Apr
29
Good question, with lots of answers. The fact is that—aside from the price of a home—owning a home comes with a number of responsibilities and choices, all of which have price tags associated with them. Most people know the about the obvious costs: the cost of purchasing the home and the cost of financing the …
Mar
21
In terms of mortgages and other loans, a principal payment is a payment that reduces the outstanding balance of the loan. For contrast, see the definition of interest payment.
Mar
21
A mortgage payment is a periodic payment used to repay a mortgage loan. Traditionally, mortgage payments have consisted of four parts: principal payments, interest payments, property tax escrows, and homeowners insurance escrows. Of these, only the principal payments go toward reducing the outstanding balance of the mortgage loan. Mortgage payments are typically due once per …
Mar
21
The loan-to-value ratio (LTV) is ratio of money owed on a property versus the value of a property. For example, if the balance owed on a mortgage is $79,000 and the market value of the property is $120,000, then the LTV ratio is 65.8% ($79,000 ÷ $120,000). LTV ratios change over time. They decline as …