We learned early on that getting a mortgage is a lot harder than it looks. The process isn't
all that transparent. It felt like taking a test without knowing the questions. This felt unfair
so we're going to
break down the process here and let you know how it works so you can pass the test with flying colours.
Let's start with some terms then piece this together.
Mortgage: A mortgage is the money you borrow from a bank to buy a home.
Collateral: The asset (home) that can be taken if the loan is not paid on time.
Ammortizaton period: How long it will take to pay the loan back in full.
Principal: The amount of the loan you pay back every monthy.
Interest: The amount of money the bank makes form lending you money.
All together now.
A mortgage is specific type of loan used to purchase a home. The bank asks you to use the home as collateral, this gives them peace of mind incase you cannot pay them back for any reason. To make money, the bank charges you interest. They also set a time period for you to payback the loan.
We're may feel more expensive because the payment is higher. But we do this so you can save enough to qualify for a mortgage. Like we shown above. Your mortgage actually has an equity portion too! You're buying some of the equity in your home every month, just less than with Ownhome. And thats okay.
Gross Debt Service (GDS):
Total Debt Service (TDS): We help you monitor these things so you can qualify.
With the Ownhome we'll monitor these things and give you a heads up when you're getting near. (SCREEN SHOT OF MOCK UP THAT MONITORS)