Standard Mortgage Blog

Buying your first home is an exciting endeavor. However, before you start scheduling showings and picking out furniture, the most important part of the process is finding the right mortgage lender for your needs. As a first-time home buyer, you have additional options when it comes to financing, and your loan officer can help you make the best decision for your situation.

A home buyer can acquire a lower interest rate by paying discount points at closing. Discount points or prepaid interest points are a one-time fee that is paid upfront, creating a lower interest rate over the term of the mortgage. When your interest rate is lower, your monthly payment becomes lower and more affordable. Let’s take a closer look at how you can get a lower interest rate.

There are a number of different components to your monthly mortgage payment. Typically, the two big ones are principal and interest. If you escrow, you may also have a portion of your payment going towards taxes and insurance. Depending on your type of loan and down payment, you may or may not be required to escrow for your taxes and insurance. Since your mortgage investor has a lien on your..