What you need to know
As a first time buyer, there are many variables to take into consideration. From financing options to which homes are on the market, whether you’re looking at existing homes or new construction, we can find a solution that meets your needs and fits your budget. It’s natural to be overwhelmed when you come face-to-face with down payments, closing costs, and potentially unknown costs. The Hero Perks team will help guide you through the process, educating you throughout so that you feel comfortable.
The Hero Perks team is interested in starting a long-term relationship with you and earning your trust.
They won’t let anyone sneak into your wallet. When you receive the keys to your new home, they want it to be with confidence, peace of mind, and total satisfaction.
What's in a mortgage
The Hero Perks team believes that knowing your estimated mortgage payment BEFORE you begin your home search is a smart first step. A mortgage calculator will help you sidestep any “fuzzy math.” It’s always fun to dream, but it’s even more fun when the dream fits into your budget. They believe that buying smart today will net thousands tomorrow!
You may be surprised to know that your mortgage payment doesn’t just pay your mortgage — other components are typically wrapped in as well.
- PITI – the term for Principal, Interest, Taxes and Insurance – is what makes up your total monthly mortgage payment.
- Principal and interest payment (P&I) – This portion of your payment goes toward amortizing (paying off) the loan amount (principal), along with the interest over the term of the loan.
- Property taxes (T) – Real estate taxes are escrowed by several lenders and go towards county expenses.
- Homeowner’s insurance premium (I) – Often, the lender will allow you to escrow your monthly home owners insurance premium in your payment. When this occurs, the insurance company will send the annual insurance bill to the lender to pay from your escrow savings.
- Private Mortgage Insurance (MIP or PMI) – This insurance covers the lender in the event that you default on your loan and the property is foreclosed on. MIP/PMI applies to properties with a loan-to-value ratio (LTV) of over 80%. So, if you make a down payment of 20% or more, PMI is not required.
Ask your Hero Perks agent for a list of trusted lenders. These lenders know that our clients need to be treated with red carpet service and will work hard to offer competitive rates and fees.