points/property taxes

annual interest payment/monthly mortgage payments

debt/equity

dp = 100% - LTV/dp = LTV x 20%

percentages/points

decrease/ increas

points/principal

income taxes / interest

tax deduction / property taxes

insurance / index rate

maintenance/ operating

encouraged / required

nonhouse structures / land

What are the costs of homeownership? The five types of costs associated with homeownership are: . the down payment closing costs, including the property taxes required by the lender; the the property taxes and insurance premiums the maintenance and operating expenses With regard to these costs: Mortgage lenders vary in the types and characteristics of the mortgage loans offered. However, virtually every mortgage lender requires a prospective homebuyer to invest some of his or her own money as a down payment. The funds contributed by the homebuyer are called and depend on the lender's loan-to-value ratio. The relationship between the lender's required down payment (DP) and its loan-to- value (LTV) ratio can be expressed as The non-interest-related lender fees, which increase with borrower demand, are equal to 1% of the amount borrowed, and are included in the borrower's closing costs, are called Lenders use different combinations of these fees and loan rates to generate additional income for themselves and additional financial choice for their borrowing customers. However, these fees the mortgage's effective interest rate. The standard monthly mortgage payment usually includes PITI, in which P stands for I stands for and T stands for The cost of the final I, which stands for depends on the house's age, location, construction, and geographic location. A house's expenses, which include its electricity, gas, sewage, and water utilities, are a large and recurring cost. To better anticipate the total cost of possible target homes, it is important that you obtain prepurchase estimates of these costs. Homeowner's insurance is by the mortgage lender and covers the replacement value of the home and its contents. An important limitation of the homeowner's policy is that it does not protect the insured's