Custom Home
Building & Designs
Milton, WI
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First Community Bank, Milton
Jeannine Kincade-
kincade@fcbmilton.com
Elaine Goodger-
goodger@fcbmilton.com
Steve Hein-
hein@fcbmilton.com
608-868-7644
www.fcbmilton.com
Evergreen State Bank, Janesville
Loren Fellows 608-373-9897
lfellows@evergreenstatebank.com
- List of Mortgage Terms
- Accelerated weekly and bi-weekly payments
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Accelerated weekly and accelerated bi-weekly payment options are calculated by
taking a monthly payment schedule and assuming there are only four weeks in a
month. We calculate an accelerated bi-weekly payment, for example, by taking
your normal monthly payment and dividing it by two. Since you would pay 26
bi-weekly payments, by the end of a year you would have paid the equivalent of
one extra monthly payment. This additional amount accelerates your loan payoff
by going directly against your loan's principal. The effect can save you
thousands of dollars in interest and take years off of your mortgage.
The accelerated weekly payment is calculated by dividing your monthly payment by four. You would then make 52 weekly payments. Just like the accelerated bi-weekly payments, you are in effect paying an additional monthly payment each year.
- Annual income
- Your annual income before taxes. For married couples this is your total combined annual income before taxes.
- Annual Percentage Rate (APR)
- A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.
- Interest rate
- Annual interest rate for this mortgage.
- Loan origination percent
- The percent of your loan charged as a loan origination fee. For example, a 1% fee on a $120,000 loan would cost $1,200.
- Monthly payment
- Monthly principal and interest payment (PI).
- Mortgage amount
- Original or expected balance for your mortgage.
- Other fees to include
- Any other fees that should be included in the APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.
- Points paid
- Total number of "points" purchased to reduce your mortgage's interest rate. Each "point" costs 1% of your loan amount.
- Property tax rate
- Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes. Also known as the Mill Rate. Take the mill rate per $1000 value of your home to estimate your taxes. Ex. Mill rate is $20.00 per $1,000 and your home is worth $200,000. Multiply $20.00 times $200 to get estimated taxes of $4000.00 per year.
- Purchase price
- The price of the home you wish to purchase. This is the actual price you'll pay, not including any closing costs.
- Term in years
- The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.
- Total interest
- Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no prepayments of principal.
- Total payments
- Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal.