MORTGAGE TERMS EXPLAINED: For First-Time Buyers

MORTGAGE TERMS EXPLAINED: For First-Time Buyers

Buying your first home? The mortgage lingo can feel like learning a new language—but we’ve got your back. Let’s break down a few key terms you need to know:

Principal – This is the amount you borrow. If your home costs $300,000 and you put $60,000 down, your principal is $240,000.

Interest Rate – The percentage you pay on your loan. Lower = better! It affects your monthly payment and the total cost over time.

Loan Term – The length of time you have to repay your loan. Most common? 15 or 30 years.

Down Payment – The amount of money you pay upfront. Typically 3% to 20%, depending on the loan type.

PMI (Private Mortgage Insurance) – Required if your down payment is under 20%. It protects the lender—but you pay it monthly.

️ Escrow – A special account that holds money for property taxes & homeowners insurance. Your lender usually collects it as part of your monthly payment.

Pre-Approval – A letter from a lender showing how much you’re qualified to borrow. It shows sellers you’re serious.

Closing Costs – Fees paid at the end of the transaction (usually 2–5% of the purchase price). Think: inspections, title insurance, and more.

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✅ Still have questions? That’s what we’re here for. The Atlantic Trust Mortgage team makes the process simple, personal, and stress-free.

Based right here in Jacksonville, FL
Let’s talk: 904-338-9356
AtlanticTrustMortgage.com