*The lender will typically only require you to purchase PMI if your down payment is less than 20 percent. You’ll only have to pay it until you reach the 20 percent equity threshold.
The mortgage company usually holds your taxes and insurance in an escrow account. When they’re due, the mortgage company pays them for you. This isn’t the case with all lenders, though, so you’ll need to double-check with yours to see if this is the way they do business.
The Annual Percentage Rate
The annual percentage rate, or APR, is the yearly picture of what the lender charges you to use their money. This figure includes the interest rate and other fees that will be included during the loan’s lifespan. It represents your total cost of borrowing money.
Many people only look at the interest rate when they’re shopping for home loans. However, it’s important to look at the APR as well.