The amount of a mortgage will vary greatly depending on the down payment you make to reduce the amount of money that is needed to finance the home. You may put as much money down as you like, or you can sometimes pay as little as 3 to 5 percent of the purchase price, or sometimes nothing at all. The more you put down, the more you reduce the amount that is financed, thereby lowering your monthly payment.
The monthly payment consists of both principal and interest but also typically includes additional amounts to cover property taxes and insurance-specifically hazard insurance and possibly private mortgage insurance, the latter of which is generally required for down payments less than 20 percent of the purchase price.
With many different mortgage options available to home buyers, you’d be well advised to speak with a trusted lender. If you don’t already have an experienced lender, let us know and we’ll put you in contact with several of we trust and use.