every $100,000). Essentially, you pay some interest upfront in exchange for a lower interest rate over the life of your loan. In general, the longer you plan to own the home, the more points help you save on interest over the life of the loan. However, the amount of cash you’ll save by buying the points depends on the number of points you buy. For instance, if your mortgage is $800,000 and you buy two points, you will owe $16,000 when closing. Further related to taxes and property ownership is that once you own a house, you’re a property owner, with the attendant obligation to pay property taxes. One method of paying property taxes is to escrow the amount of annual taxes within the mortgage payment. The mortgage servicer will pay the taxes as they are due. A second method in California is to pay to Tax collector twice per year, in April and in December. When buying a house, escrow will calculate the total amount of real estate taxes, as well as the number of days in a property tax year that you were the owner of the said property and escrow that amount, prorating the payment. People have been known to spend months looking for the best possible home and eventually find a good one. However, many of these individuals fail to understand the importance of finding a good loan. In the end, the new homeowner has a nice home, but a potential bad deal when it comes to the mortgage. As we mentioned we can assist with finding the proper lender. Not many people have the capability to buy a house for cash; most people will require a mortgage. Therefore, you not only need to go shopping for a house—you also should go shopping for the best loan deal. There are different types of loans out there,
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