The amount of capital that one borrows is dependent on how much money one has saved up, how much one can afford to borrow, and an individual's monthly budget. Your entire mortgage payment is devised of four parts: Principal, Interest, Taxes, and Insurance.


length_of_payment.jpg      LENGTH OF MORTGAGE

It is feasible to receive mortgages within a short amount of years, or in decades. The frequently common length is 30 years. Also desirable, yet not as popular, are 15-year loans.




PITI is a helpful acronym that allows you to remember what constitutes your mortgage payment.

principal.jpg    Principal

The extent of money an individual assuredly borrows in the structure   of a mortgage. If an individual's mortgage is hypothetically $420,000, then the principal is the identical amount: $420,000. This is the amount one would be required to pay back to the lender -- if the lender did not include interest. 


interest.jpg    Interest

The money your lender entrusts an individual for the allowance of borrowing that particular principal. It is articulated as a yearly percentage. Because the interest on a mortgage augments monthly, consistently adding to itself over a period of time, the math necessary to dictate your interest payment is complex.




An individual's property taxes are likely to be a substantial expense, depending on one's location and a property's assessed value. Property taxes are capable of being collected at the state, county, and city or town level. 




Insurance can constitute various types of insurance such as homeowners insurance, flood or earthquake insurance. If an individual positions less than 20% of the property's purchase price for a down payment, that individual could be entitled to pay mortgage insurance. This is an additional expense that lenders gather to offset the hazard of borrowers with less "skin in the game" defaulting on their loans.


Other Fees

Other fees can consist of HOA dues among other fees.






Contact Info
Hanu Reddy Realty

Hanu Reddy Realty

16251 Laguna Canyon Rd. #100
Irvine  California 92618

Office: 949-450-8800 CA BRE Lic. 00873745 Email:

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