This includes your mortgage principal and the default insurance premium, if needed.
This is the total amount you borrow from a lender to purchase your awesome new home. When you tell friends you have a $250,000 mortgage, you’re talking about the mortgage principal. You pay back the principal, with interest, to the lender over time through mortgage payments.
If you put down less than 20% of the home price, you’ll need mortgage default insurance. It protects your lender if you can’t repay your mortgage loan.
Applies to new mortgages of owner-occupied properties with an amortization of 25 years or less.
Annual Percentage Rate (APR) is the cost of borrowing for a loan expressed as an interest rate. It includes all interest and non-interest charges associated with the mortgage. If there are no non-interest charges, the annual interest rate and APR will be the same.