First, a mortgage is a loan from a lender to a borrower to buy a piece of real property (a fancy way to say house, land, etc). The interest on the mortgage is the percentage of money the borrower agrees to pay the lender each year, in return for lending the money.
Here is where it gets complicated, the lender wants to loan to be affordable for the borrower so they spread the interest out over time. This is called amortization. Amortization is the amount of money that goes toward principal (the amount of the loan) and interest. This amount changes over time because the interest owed is spread over time.
There is a booklet put out by the U.S. Department of Housing and Urban Development that explains the mortgage and interest process. You can find the booklet here.
Now often your payment is more than just the principal and interest. A monthly mortgage payment is often called a PITI payment. No, not pity even though you might need pity when looking at your loan statement. PITI stands for:
Principal – the loan balance
Interest – interest owed on that balance
Real estate Taxes – taxes assessed by different government agencies to pay for school construction, fire department service, etc.
Property Insurance – insurance coverage against theft, fire, hurricanes and other disasters
There may also be other fees depending on the kind of mortgage you have. Your monthly payment may also include private mortgage insurance (PMI).
Remember there is a lot to know about mortgages beyond the rate so be sure to talk to a mortgage professional to make sure you fully understand your payment options.
The fire on Branch Street in Lowell this week was the worst our state has seen in over a decade. Seven died, including three children, and more than 50 were displaced, losing their homes and everything in them. In reaction to the devastating losses, LAER Realty Partners is stepping in to offer support by offering donations to the families through Cambodian Mutual Assistance Association and by offering complimentary relocation services to those displaced.
“The outpouring of support has been amazing,” says Stacey Alcorn, co-owner of LAER. “We have had real estate agents from across the state reach out offering support.”
Here’s how you too can support the families.
1. Stop by any LAER office between now and Wednesday, July 16th, and donate clothing, household goods, toys, or anything that the families can use in rebuilding their homes.
2. If you have a home or apartment in the Merrimack Valley area which you are interested in renting out to one of the families please reach out to a LAER agent so that we may add your property to the list of those available for lease. LAER Realty is offering complimentary relocation services to the families that have been displaced.
3. Make donations to the families through the Cambodian Mutual Assistance Association GoFundMe page for the Branch Street fire victims.
Westford MA ListingsWestford, MA - $815,000
2 Elderberry Way - Single-Family - Colonial - Rooms:12 - Beds:4 - Baths:2/12 hours agoWestford, MA - $1,250
319 Littleton Road - Commercial - Year Built:1986 - Acres:2.274 hours agoWestford, MA - $374,900
74 Pleasant St - Single-Family - Ranch - Rooms:7 - Beds:3 - Baths:25 hours agoWestford, MA - $310,000
70 Tyngsboro Road - Single-Family - Split Entry - Rooms:6 - Beds:3 - Baths:26 hours agoWestford, MA - $599,900
32 Lake Shore Dr N - Single-Family - Ranch, Raised Ranch - Rooms:9 - Beds:5 - Baths:2
Chelmsford MA ListingsChelmsford, MA - $226,900
503 Wellman Avenue - Condo - Townhouse - Rooms:7 - Beds:2 - Baths:2/16 hours agoChelmsford, MA - $410,000
36 Hatikva Way - Single-Family - Colonial - Rooms:7 - Beds:4 - Baths:217 hours agoChelmsford, MA - $317,900
18 Highland Ave - Single-Family - Colonial, Antique - Rooms:7 - Beds:3 - Baths:1Chelmsford, MA - $174,900
181 Littleton Rd - Condo - Garden - Rooms:5 - Beds:2 - Baths:2Chelmsford, MA - $94,900
1 Courthouse Lane - Commercial - Year Built:1986 - Acres:0
Lowell MA ListingsLowell, MA - $189,900
52 Lawrence Dr - Condo - Hi-Rise - Rooms:4 - Beds:2 - Baths:239 minutes agoLowell, MA - $269,900
53 Cogger Rd - Single-Family - Ranch - Rooms:7 - Beds:3 - Baths:21 hour agoLowell, MA - $295,000
825 Princeton Blvd - Single-Family - Colonial - Rooms:7 - Beds:4 - Baths:21 hour agoLowell, MA - $259,900
54 Oakland Street - Single-Family - Colonial - Rooms:8 - Beds:4 - Baths:1/11 hour agoLowell, MA - $269,900
21 Saint James St - Multi-Family - Units:2 - Levels:2 - Parking Spaces:42 hours ago
- Drunk Driver Caught After Passing Car, Westford Cops Say July 25, 2014Westford police on July 9 charged a Woburn man with OUI after he allegedly passed a vehicle while speeding. […]
- Live Updates: Market Basket Workers Stage Massive Rally July 25, 2014By Liz Taurasi Market Basket employees are vowing to make today's rally their biggest one yet. […]
- Westford panel questions value of Drew Garden property July 24, 2014The task force designated to review whether the town should purchase "the gateway" Drew Garden property questioned in its meeting Wednesday night whether Westford would gain anything from buying the land. […]
- Are You Boycotting Westford's Market Basket Stores? July 23, 2014Striking Market Basket workers this week called for customers to boycott stores-a move that upped the ante in a dramatic fight over the company's future. […]
- Drunk Driver Caught After Passing Car, Westford Cops Say July 25, 2014
- Mouth of Merrimack great spot July 25, 2014Andy Wilson of Chelmsford caught a nice bass recently. Sun staff photos can be ordered by visiting our SmugMug site. […]
- Analysts: Market Basket drama gives competitors 'tremendous' boost July 24, 2014If the Market Basket strife is bad for employees, bad for management and bad for the grocery-store chain's bottom line, that could be very good news for competitors like Stop & Shop, Hannaford or Shaw's. […]
- Two I-495 crashes in Chelmsford, one injury July 23, 2014State police say there was just one injury as two crashes, involving a total of three passenger vehicles and three tractor trailers, snarled traffic on Interstate 495 north in Chelmsford Tuesday evening. […]
- Tractor Trailer Crash Closes Down Lanes on I-495 North July 23, 2014Massachusetts State Police say two left lanes are closed on I-495 Northbound on the Chelmsford/Westford lane following a tractor trailer crash just after 7:30 p.m. Monday night. […]
- Mouth of Merrimack great spot July 25, 2014
- Fred Warren Road Race is back for 51st year July 25, 2014Many people, including many participants and organizers, wondered if last year's Fred Warren Road Race, the 50th, would be the last. […]
- Thanks, Sgt. Fleming, for July 25, 2014I have no firsthand knowledge of the incident that led to the recent administrative action and subsequent retirement of Sgt. […]
- Donations pour in for Branch St. fire victims July 25, 2014Tables were set up in a U-shape at the Radisson Hotel & Suites conference room as relief agencies awaited the arrival of victims of the Branch Street fire on Wednesday. […]
- Bill would ban shark finning July 24, 2014The practice of shark finning would be outlawed in Massachusetts under a bill set to receive Gov. Deval Patrick's signature. […]
- Fred Warren Road Race is back for 51st year July 25, 2014