Make Sure You Understand the Fine Print in Your Mortgage

There’s a lot to think about when buying a home in Alpine, TX. Not only are there things directly related to the home to think about, like required disclosures and inspections, but there’s the financial side as well.

Odds are, if you’re buying a home, you will also be entering into a mortgage contract. There are a lot—and we mean a lot—of documents you will be signing and initialing related to your mortgage. Like any contract, there might be some things that are less easy to understand in those mortgage documents.

The language of a contract is often referred to as “legalese.” Indeed, it can sometimes seem like a completely different language than English. (Who actually talks like that, anyway?) But you will still need to sign the documents, and it’s important to read and understand everything in the documents, even the mortgage fine print. Here’s how to read a mortgage document in Alpine, TX.

Key terms to understand

There’s a lot to process in these lengthy mortgage documents, but you will see a few terms pop up over and over again. There are some key terms to understand when reading a mortgage document that will affect more than just the sale of the home.

While there are important terms to understand that pertain to the actual home itself, there are also some that pertain to the financial side. Once the documents are signed, it may be difficult to change and you may find yourself losing out on a lot of money down the road.

Interest rate

Of all the things to understand in a mortgage document, this is perhaps the most important. Many mortgage documents use similar language, but one thing that will be specific to your situation is the interest rate.

For example, is your interest rate fixed or variable? If it’s fixed, that means the rate you pay will not change. A fixed rate often looks like a higher number on paper, but it’s also a more stable and predictable payment.

A variable interest rate, on the other hand, can and likely will change after a certain period of time. While it may look lower on paper, this is often a “teaser” rate that can greatly increase after a number of years. You may end up paying more over the term of the loan with a variable interest rate.


APR stands for annual percentage rate. This is the combination of all the fees associated with the loan and the total amount of interest to be paid over the length of the loan. It’s a quick way to compare mortgages. Be aware, however, that there is more to a mortgage than just APR.

When you’re ready to buy or sell a home in Alpine, TX, call Carpenter Real Estate to make sure you understand all the mortgage fine print related to your new home sale or purchase. With over 70 years of experience, we’re the authority on local real estate, and we look forward to assisting you!