Your monthly check to the bank isn't just paying back the house price. It’s usually a bundle called : Principal: The actual balance of the loan. Interest: What the bank charges you to borrow the money. Taxes: Property taxes collected by your local government. Insurance: Homeowners insurance to protect the asset. 4. Getting Pre-Approved
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While the "20% down" rule is the gold standard (it helps you avoid private mortgage insurance), many programs allow for as little as 3% or 3.5% down. 2. Choosing Your Loan Type
