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Understanding Your Estimate
Principal Amount
The core balance of your loan. This is the actual amount you borrow to purchase your home, which decreases over time as you make your monthly payments.
Interest Rates
The cost you pay to the lender for borrowing the money. Interest is calculated as a percentage of the principal and varies based on current market conditions and credit scores.
Property Taxes
Annual taxes collected by your local government to fund public services. These are typically held in an escrow account and paid on your behalf by the lender.
Insurance Premiums
Includes homeowners insurance to protect your property and, in some cases, Private Mortgage Insurance (PMI) if your down payment is less than 20%.
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