Principal and Interest
All mortgages have two features in common. The first feature is the mortgage principal, which is the actual amount of money you borrow.
So, if you take out a $70,000 mortgage, your mortgage principal is $70,000. The second feature is the mortgage interest, which is the
money you pay for use of the money you borrow. The interest you pay on your mortgage can be deducted from your taxes, which is one of
the many benefits of home ownership.

The four factors that affect your mortgage payments
They are: •the size of your down payment,
•the amount of your mortgage,
•your mortgage interest rate, and
•the repayment term of the mortgage loan you choose 10 years, 15 years or 30 years.

For example, your down payment will reduce the amount you’ll need to borrow. So, the more cash you put down, the smaller the size of
your loan. And the smaller your mortgage payments will be.

Down Payment
In the past, purchasing a new home required home buyers to make a down payment amounting to at least 20% of the purchase price of the
home. Today, however, with the help of FHA loan programs down payments are as low as 3.5% of the sales price of the home...

Reserves
When applying for a new mortgage loan it is important to demonstrate a savings plan in place which can be demonstrated by providing
several forms of verifications such as but are not limited to retirement, 401K, IRA, Checking accounts, Savings accounts, ect....
Housing Services Resources
Buying a Home...1, 2, 3: Borrowing Basics
The whole process of getting a mortgage can be confusing. This
section will give you an idea of what to expect when you apply for
a mortgage loan. It will also give you some ideas of the questions
you should ask your loan officer when you are shopping for a
mortgage.

What is a mortgage loan?
A mortgage requires you to pledge your home as the lender’s
security for repayment of your loan. The lender agrees to hold a lien
on your property until you have paid back your loan plus interest.