Principal – The portion of the payment that pays down the amount owe to the bank. This amount is deduced to reduce the amount of the unpaid balance of the mortgage
Interest – The interest is the amount you pay to the bank for allowing you to borrow their money.
Taxes – The mortgage company holds (or “escrows”) 1/12 of the annual property tax amount in an account to be able to pay the property taxes when they are due.
Insurance – The mortgage company holds 1/12 of the annual insurance amount (for homes for sale in Jacksonville NC both home owner’s insurance and a wind and hail policy are required). The mortgage company pays the insurance company directly for the insurance policy.
Are you a first-time home buyer looking for a home near Jacksonville, NC? Looking to use your VA loan for the first time and you are not sure where to start? Give Kelli Salter, REALTOR®, a call at (910)358-8868 to get started buying your first home!