The financing basics buyers wish they'd known sooner
Rate isn't the whole story. A short, plain-English guide to loan types, points, and what actually shows up in your monthly payment.
Every the Catawba Valley buyer eventually asks these questions. Better to know the answers before you write the offer.
Rate vs APR
The rate is the interest on the loan. The APR includes fees. When you compare lenders, compare APRs — that's the apples-to-apples number.
Points
You can pay upfront to lower your rate. Whether it's worth it depends on how long you'll stay in the home. Break-even is usually 5–7 years.
PMI (private mortgage insurance)
Kicks in below 20% down. Not the boogeyman it's made out to be — buying sooner and building equity often beats waiting to save more.
Escrow
Your monthly payment usually includes 1/12 of your annual property tax and homeowner's insurance. That's why the payment is more than "principal + interest."
The one number to watch
Debt-to-income ratio. Keep it under 43% and most doors stay open.
Want a lender intro? Ashley has partners who actually pick up the phone.