Mortgage Calculator TX (Texas)
Overview of Texas Housing Market 2023
In 2023, the Texas housing market is set to calm down, regardless of that it still remain good for sellers. Right now, the average home value is $303,971. Despite the expected cooling off of the Texas housing market in 2023, it can be perceive that it is still a good time to buy a home in the state. The job market is strong, the population is growing, and interest rates are still relatively low. If you are looking to buy a home in Texas, be prepared to act quickly and be willing to pay a premium for your desired property.
At Brighton Bank, our commitment goes beyond just providing financial services. We believe in empowering our customers with the tools and resources they need to make informed decisions about their financial future. That's why we've put together this dedicated mortgage calculator landing page – to offer you a seamless, transparent, and personalized way to explore your home financing options.
What's on this page?
-Property Tax in Texas
-Closing Costs in Texas
-Housing Market in Texas
Mortgage Calculator TX (Texas)
How to Calculate a Mortgage Payment
Calculating a mortgage payment involves a few key components: the loan amount, interest rate, loan term, and the type of mortgage. The most common type of mortgage is a fixed-rate mortgage, where the interest rate remains constant throughout the loan term. Here's how to calculate your monthly mortgage payment: The formula to calculate the monthly mortgage payment is:
M = P * [r(1+r)^n] / [(1+r)^n - 1]
The Variables are as follows:
M is the monthly mortgage payment.
P is the principal loan amount.
r is the monthly interest rate (annual rate divided by 12 and converted to a decimal).
n is the number of monthly payments (loan term in years multiplied by 12).
How a Mortgage Calculator can help you.
The Mortgage Calculator TX (Texas) is a powerful tool designed to assist individuals in making well-informed decisions about their home financing options. This calculator provides a range of benefits:
Payment Estimation: Predict your monthly mortgage payments based on loan details, aiding budget planning.
Scenario Comparison: Testing different loan amounts, interest rates, and terms to understand their effects on payments.
Loan term: Choose 30 years for lower monthly payments but higher interest or 15 years for less interest with higher monthly payments.
Avoiding strain: Brighton Bank's calculator factors taxes, insurance, and mortgage costs for a clear monthly commitment view.
Down payment: Lower 3% down payments feasible, calculator assists in optimal initial investment.
Affordability Assessment: Determining how much house you can comfortably afford within your budget.
Interest Analysis: This shows the total interest paid over the loan's life, guiding decisions on loan terms and types.
Key Determinants of Your Mortgage Payment
At Brighton Bank, we understand that your mortgage payment is influenced by a range of factors. Here are the essential elements that contribute to shaping your mortgage payment:
Loan Amount and Interest Rate: The total amount you borrow and the interest rate applied directly impact your monthly payment. A higher loan amount or interest rate typically results in higher monthly payments, while a lower loan amount or interest rate leads to more manageable payments.
Loan Term and Type: The length of your loan term and whether it's a fixed-rate or adjustable-rate mortgage matters. Shorter terms often have higher monthly payments but lower overall interest costs. In contrast, longer terms may offer lower monthly payments but potentially higher interest expenses over time.
Property-Related Costs: Property taxes based on your home's value and location, along with homeowners insurance to safeguard your investment, are included in your monthly payment. We can help you estimate these costs accurately.
Down Payment and PMI: A larger down payment reduces your loan amount, potentially lowering your monthly payment. If your down payment is less than 20 percent, Private Mortgage Insurance (PMI) might apply, adding a cost to your payment until you gain sufficient equity.
Our team at Brighton Bank is committed to guiding you through these intricacies, ensuring you make informed decisions tailored to your financial aspirations. With our expertise, you can navigate these elements and secure a mortgage payment that suits your unique needs.
What you can do to lower your monthly payment
A mortgage constitutes a long-term financial arrangement aimed at funding a home purchase, necessitating both repayment of the principal amount and the regular settlement of interest to the lender. The monthly cost of a mortgage can vary significantly based on factors like property price, location, and the type of loan selected.
To assist you in curbing your monthly mortgage expenses and achieving savings, Brighton Bank offers insightful strategies:
Opt for a more budget-friendly home: Selecting a less expensive property translates to a reduced loan amount and subsequently lowers your monthly mortgage obligation.
Make a larger down payment: If you make a down payment of 20% or more, you won't have to pay private mortgage insurance (PMI). PMI is an extra insurance that lenders require if your down payment is less than 20%. It can add hundreds of dollars to your monthly mortgage payment.
Secure a lower interest rate: Engage in thorough research across different lenders to identify the most favorable interest rate, contributing to a decreased overall mortgage expense.
Adjust your loan term: Opting for a longer loan term results in more manageable monthly payments, though it leads to a higher cumulative interest payment over time.
How lenders decide how much you can afford to borrow
When considering your borrowing capacity, Brighton Bank takes into account several key factors to ensure a responsible and suitable lending decision. Here's how Brighton Bank determines your borrowing capacity:
Income Evaluation: Brighton Bank assesses your income stability and sources to gauge your ability to comfortably make repayments.
Debt-to-Income Ratio (DTI): The bank analyzes your existing debts in relation to your income to determine a borrowing amount that maintains a manageable debt load.
Credit History Check: Your credit score and history are reviewed to judge your creditworthiness and ensure that the borrowing terms align with your financial track record.
Down Payment & Affordability: Brighton Bank considers your down payment amount, overall property expenses, and the chosen loan type to ensure that the borrowing amount remains within your financial means.
Determining Your Affordable Home Budget in TX (Texas)
When determining your affordable home budget in Texas, begin by assessing your financial situation, considering your income, expenses, debts, and the cost of housing in the area you want to live. Experts generally recommend that your monthly housing expenses should not exceed 25-30% of your monthly income and your debt-to-income ratio should ideally stay below 43% to secure a mortgage more easily. The cost of housing varies widely across Texas. The most expensive cities, such as Austin and Dallas, have median home prices well above the state average. If you are on a tight budget, you may want to consider living in a smaller town or rural area.
For instance, imagine you're a young professional living in Texas, with a $5,000 monthly after-tax income, you plan to spend $1,250 to $1,500 (25-30%) on housing. With $700 in existing debts and aiming for a debt-to-income ratio below 43%, you're pre-approved for a mortgage up to $1,800. This includes a $20,000 down payment, ongoing costs, and property taxes. Armed with this information, your affordable home budget in Texas falls between $1,250 and $1,800 per month. With a solid financial plan in place, you're ready to begin your home search with confidence.
Considering the down payment is equally essential, as this upfront amount impacts your loan terms. In Texas, down payments can range from 3% to 20% of the home's purchase price, based on the loan type and lender's requirements. A higher down payment not only reduces your mortgage amount but can also potentially lead to better loan conditions. Remember to account for ongoing costs associated with homeownership, including maintenance, repairs, and utility bills. These expenses can vary based on the property's size and condition.
Determining your affordable home budget in Texas involves a comprehensive evaluation of your post-tax income, housing costs, existing debts, down payment options, ongoing homeownership expenses, and potential property tax implications. Balancing these factors will empower you to make an informed and financially prudent decision when purchasing a home in Texas.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
Following your estimation of mortgage payments, the journey towards homeownership unfolds with essential next steps guided by Brighton Bank.
Whether you're embarking on this path for the first time, considering refinancing, or managing credit challenges, Brighton Bank is here to offer invaluable support at every phase.
Compare Our Rates: Before making a commitment, it's crucial to explore and assess offers from various mortgage providers. Brighton Bank encourages you to compare our rates with others, ensuring you make an informed decision. For more details, you can also access information about mortgage rates tailored to your location.
Undecided? Rent or Buy: If you're still weighing the options between renting and buying a home, Brighton Bank provides the guidance you need to evaluate which choice best suits your unique circumstances and financial goals.
Expand Your Knowledge: Brighton Bank provides a comprehensive resource to help you expand your understanding of diverse mortgage options. Whether you're interested in reverse mortgages, VA home loans, or FHA home loans, Brighton Bank equips you with insights to select the mortgage type that aligns with your preferences and requirements.
The Texas housing market is currently in a state of flux. Home prices have been rising steadily in recent years, but they have started to cool off in recent months. The number of homes for sale has also been increasing, which is putting downward pressure on prices. The housing market in Texas is expected to continue to cool off in the coming months. However, it is still a seller's market, and home prices are still expected to rise in the long term.
According to a research economist from the Texas Real Estate Research Center at Texas A&M University, the signs from housing market indicators suggest that the intense housing activity in Texas has come to an end. Both the growth in housing sales and housing prices have reached their highest points and are now decelerating. Furthermore, metrics such as months of inventory, listings, and days on the market have hit a low point and are now starting to increase.
What is the housing market like right now?
In June 2023, Texan home prices saw a decrease of 2.6% compared to the previous year, with a median selling price of $362,000. The number of homes sold experienced a decline of 10.9% on average year over year, with 31,492 homes sold in June this year—a notable decrease from the 35,372 homes sold in the same month last year. The median time homes spent on the market was 34 days, marking a 15-day increase compared to the previous year.
What does this mean?
The trend and rate of shifts in home prices serve as indicators of the housing market's vitality and the evolving affordability of homes. Currently, the median home price in the United States is at $362,000.
Average Closing Cost in TX (Texas) Counties
When purchasing a home in Texas, it's imperative to factor in not just the property's purchase price, but also the associated closing costs linked with the transaction. Closing costs encompass an array of fees and expenses that are customarily settled at the conclusion of the real estate deal. These costs can exhibit notable variations contingent on the specific county within which the property is being acquired.
Average closing costs are the fees and expenses that homebuyers and sellers typically incur during the process of closing a real estate transaction. These costs can vary widely depending on factors like location, property value, and the specific terms of the deal. On average, closing costs typically range from 2% to 5% of the home's purchase price. For a homebuyer, these costs can include expenses such as loan origination fees, appraisal fees, title insurance, property taxes, and attorney fees. Sellers, on the other hand, may be responsible for costs like real estate agent commissions, transfer taxes, and any outstanding liens or repairs required to close the sale.
The exact breakdown of closing costs can differ from one transaction to another, but certain fees are fairly standard across most real estate transactions. These can include lender fees, title insurance, and escrow fees. It's essential for both buyers and sellers to carefully review the estimated closing costs provided by their real estate professionals and lenders to have a clear understanding of the financial implications of the transaction. Homebuyers may also have the opportunity to negotiate some of these costs with the seller or lender, potentially reducing their financial burden during the closing process.
The average closing costs encompass a range of fees and expenses incurred when buying or selling a property, and they typically amount to a percentage of the home's purchase price. The specific costs can vary widely depending on various factors, and it's crucial for individuals involved in a real estate transaction to be aware of these costs and to review and negotiate them whenever possible. Understanding closing costs is a fundamental aspect of the homebuying or selling process and helps individuals budget effectively for the overall cost of their real estate transactions.
Average Property Tax in TX (Texas) Counties
Having knowledge of the average property taxes in various counties in Texas is essential for homeowners and investors. It aids in evaluating affordability, conducting county comparisons, financial planning, and influencing investment decisions. This insight becomes a cornerstone for budgetary considerations, well-informed decision-making, and projecting potential gains from real estate investments.
The dataset unveils a comprehensive overview of property tax dynamics within various counties, illuminating crucial factors such as median home values, median annual property tax payments, and average effective property tax rates. This collection of data provides valuable insights into the financial implications that property owners across these counties encounter. By delving into the specifics, a more nuanced understanding emerges.
For instance, focusing on Anderson County, the reported median home value of $110,000 translates to an associated median annual property tax payment of $1,507. This financial commitment aligns with the county's average effective property tax rate of 1.37%. In a similar vein, Andrews County reflects a median home value of $153,200, contributing to a median annual property tax payment of $1,974. This is accompanied by an average effective property tax rate of 1.29%. These trends continue as we explore the dataset's entries, each county presenting its distinctive blend of property valuation, tax payment, and tax rate.
By examining this dataset, individuals, whether potential homeowners or investors, gain access to a comprehensive overview of the intricate relationship between property values and the ensuing tax burdens within these specific Texas counties. Armed with this information, they can make informed decisions regarding property acquisition and ownership, taking into account the financial responsibilities inherent in each region.
What Property Tax Exemptions Are Available in Texas?
Let's delve into four common property tax exemptions applicable in Texas:
Residence homestead exemption. This exemption is available to homeowners who use their property as their principal residence. The amount of the exemption varies depending on the taxing authority, but it is typically $25,000 for school district taxes and $40,000 for all other taxes.
Senior Citizens or disabled exemption. This exemption is available to homeowners who are 65 years of age or older or who are disabled. The amount of the exemption is $10,000 for school district taxes and $12,000 for all other taxes.
Veteran exemption. This exemption is available to veterans who are disabled or who have a service-connected disability rating of at least 10%. The amount of the exemption is $12,000.
Charitable organization exemption. This exemption is available to organizations that are organized and operated exclusively for charitable purposes. The amount of the exemption varies depending on the type of organization.
Property Tax Landscape in Texas and Beyond
Property taxes are a significant source of revenue for local governments in Texas, including counties, cities, school districts, and special districts. Texas does not have a state income tax, making property taxes a crucial component of funding public services and infrastructure.
Texas property taxes are governed by the Texas Property Tax Code, and the rates and assessment processes can vary from one jurisdiction to another. The property tax system involves appraising property values, determining tax rates, and collecting taxes. The property's appraised value is multiplied by the tax rate to calculate the property tax owed. This system is the cornerstone of funding for essential services, making property taxes a critical component of the state's financial structure.
Rapid economic growth and population expansion in certain areas have led to rising property values, posing challenges for homeowners facing potential tax increases. Statewide conversations about property tax reform have explored mechanisms to enhance transparency, improve appraisal accuracy, and address concerns related to tax limitations. Amid these deliberations, various exemptions, such as the homestead exemption and exemptions for veterans and senior citizens, provide relief to specific groups. As Texas navigates its unique tax landscape, the property tax system remains a linchpin for funding vital public resources and shaping the state's fiscal landscape.
Home insurance, also known as homeowners insurance or property insurance, is a type of insurance policy that provides financial protection to homeowners against various risks and perils that could damage or destroy their property. This insurance coverage helps homeowners recover financially in case of unexpected events that result in damage to their homes, or belongings, or liability for injuries or damages to others that occur on their property.
Coverage Types and Options
When it comes to protecting your most valuable asset, understanding your options is essential. Home insurance offers various types of coverage to ensure you're safeguarded against unexpected events. Here are some key coverage types:
Dwelling Coverage: This protects the structure of your home itself, including its foundation, walls, roof, and more.
Personal Property Coverage: Covers your belongings, such as furniture, electronics, and clothing, in case of damage or theft.
Liability Coverage: Offers financial coverage in the event someone gets hurt on your premises and you are deemed liable.
Additional Living Expenses: Helps with temporary housing and living expenses if your home becomes uninhabitable due to covered events.
Factors That Determine Coverage Needs for TX (Texas)
When considering homeowners insurance in Texas, there are several factors that will determine the coverage you need. These factors can vary from person to person, but it's important to understand them in order to make an informed decision about your policy. Here are some key factors to consider:
Location - The location of your home plays a significant role in determining your coverage needs. Texas encompasses diverse areas with varying risk profiles. Coastal regions, particularly along the Gulf of Mexico, face the threats of hurricanes, storm surges, and coastal flooding. Flood-prone zones extend beyond the coast, affecting communities near major rivers and susceptible to river overflow during heavy rainfall. Urban centers can exhibit high-crime neighborhoods, necessitating consideration of local crime rates when evaluating safety. The western part of the state is at risk of wildfires due to arid conditions, particularly during droughts. These distinct risks underscore the importance of informed decision-making for residents and investors, involving considerations of location, property purchases, and appropriate insurance coverage.
Coastal Proximity - For homes located near the coast, there may be increased risks associated with hurricanes, storm surges, and coastal erosion. It's important to have coverage that protects your property from these potential threats.
Flood Zones - If your home is located within a flood zone, it's crucial to have flood insurance coverage, as standard homeowners insurance policies typically do not cover flood-related damages.
High-Crime Neighborhoods - Homes situated in areas with higher crime rates may require additional coverage for theft and vandalism. This can help protect your property and belongings in case of unfortunate events.
Dwelling Features - The characteristics of your home also influence your coverage needs. Factors such as the age, size, construction materials, roof type, and overall condition of your dwelling can impact the cost of insurance and the level of coverage required.
Property Value - The value of your home determines the amount of coverage you need to adequately protect your investment. It's essential to insure your home for its replacement cost, ensuring that you would receive enough compensation to rebuild or repair any damages.
Personal Belongings - The value of your personal belongings inside your home is another crucial aspect to consider. Expensive items such as jewelry, artwork, or electronics may require additional coverage through personal property endorsements or scheduled personal property policies.
Tips for Lowering Your Homeowners Insurance Premiums for TX (Texas)
Homeowners in Texas are often looking for ways to save on their insurance premiums. Here are some helpful tips to lower your homeowner's insurance costs:
Explore Options: Don't just accept the initial quote you get. Make an effort to obtain and compare estimates from several insurance providers.
Increase Deductibles: Think about increasing your deductible if you can afford a larger upfront cost during a claim.
Combine Coverage: A lot of insurance firms provide discounts when you merge various policies, like home and car insurance. Inquire about the potential savings when obtaining quotes.
Improve Home Security: Installing smoke detectors, burglar alarms, deadbolt locks, and other security measures can reduce the risk of damage or theft, leading to lower premiums. Be sure to inform your insurer once you have implemented these security features.
Maintain Good Credit: In many states, including Texas, insurance companies can use your credit score to determine your premiums. Keeping a strong credit rating can assist in reducing your insurance premiums.
Stay Claims-Free: Building a claims-free history can often lead to discounts on your premiums. Avoid making smaller claims and save your insurance for significant losses.
By implementing these tips, homeowners in Texas can potentially enjoy significant savings on their homeowner's insurance premiums while maintaining adequate coverage.
Trends in Homeowners Insurance Rates for TX (Texas)
Homeowners insurance rates can fluctuate over time due to various factors. Staying informed about the trends in homeowners insurance rates helps homeowners in Texas make educated decisions regarding their policies. Here are some recent trends worth considering:
Increasing Material and Labor Costs: The cost of building materials and labor can impact homeowners insurance rates. In recent years, the rising prices of construction materials and the demand for skilled labor have contributed to an increase in insurance premiums.
Climate Change Impact: Climate change can result in an increase in severe weather events, including hurricanes, storms, and floods. These events can cause significant property damage and result in insurance companies adjusting their rates accordingly.
Technological Advances: Advancements in technology have led to improved methods of assessing risks and deciding insurance premiums. Insurance companies are increasingly leveraging data and analytics to determine rates, resulting in more accurate pricing based on individual risk profiles.
Market Competition: The competitive landscape among insurance companies in Texas can influence rates. When multiple insurers compete for customers, it can lead to more competitive pricing and potential savings for homeowners.
Legislative Changes: Changes in local or state laws can also impact homeowners insurance rates. It's important to stay informed about any regulatory changes that may affect your premiums.
Keeping an eye on these trends helps homeowners in Texas understand the factors driving insurance rates and make informed decisions when purchasing or renewing their policies.
Average Homeowners Insurance Costs for TX (Texas)
Understanding the average homeowners insurance costs in Texas provides homeowners with a benchmark for comparison. While individual premiums can vary based on numerous factors, here is an overview of the average costs in the state:
In August 2023, the average yearly cost of homeowners insurance in Texas is $2,919 , amounting to $243 per month. This cost is notably 66% less than the national average expenditure of $1,754 per year.
This average cost, however, can vary depending on the factors discussed previously, such as location, dwelling features, property value, and personal belongings.
Coastal properties or areas prone to flooding may experience higher premiums due to increased risks.
It's important to note that this average cost is for a standard homeowners insurance policy and does not include any additional coverages or endorsements.
Homeowners should request personalized quotes from insurance companies to obtain accurate estimates based on their specific circumstances.
By understanding the average homeowners insurance costs in Texas, homeowners can better budget for their insurance expenses and ensure they have appropriate coverage without overpaying.
Texas State Average Insurance Premiums by Dwelling Limit
The data provided represents the estimated annual property tax amounts for different home values in the state of Texas. For a property valued at $250,000, the annual property tax is approximately $3,679.96. As the home value increases, the property tax amount also rises proportionally. For example, for a $350,000 home, the estimated property tax increases to about $4,851.37 per year. Similarly, for a $450,000 home, the annual property tax is roughly $5,973.96, and for a higher-priced property valued at $750,000, the property tax amounts to approximately $9,508.83 annually.
Texas is known for having relatively high property taxes compared to some other states. This is because the state does not have an individual income tax, and local governments rely more heavily on property tax revenue to fund essential services and public education. Property taxes are a significant source of revenue for counties, cities, school districts, and other local entities in Texas.
The property tax system in Texas is complex and comprises both state and local components. Local governments set property tax rates, and they can vary significantly depending on the location within the state. Additionally, homeowners may be eligible for certain exemptions and deductions, which can help reduce their property tax liability.
Understanding property taxes is crucial for homeowners and potential buyers in Texas, as property taxes can have a substantial impact on the overall cost of homeownership. It's important to research and consider property tax rates in the specific area where you plan to buy a home and to be aware of any available exemptions or deductions that could help lower your property tax bill.
Mortgage Resources in TX (Texas)
Mortgage resources refer to various tools, information, and support available to individuals seeking to obtain or manage a mortgage loan. Mortgage resources are valuable for both first-time homebuyers and existing homeowners looking to refinance or better understand their mortgage options.
Brighton Bank Mortgage Services
Are you looking for reliable mortgage services in Texas? Look no further than Brighton Bank! We are dedicated to helping you achieve your homeownership dreams with our range of mortgage solutions tailored to meet your unique needs. Whether you're a first-time homebuyer or a seasoned real estate investor, Brighton Bank is here to assist you every step of the way.
Why Choose Brighton Bank for Your Mortgage Needs?
1. Personalized Service: Our team of experienced mortgage experts will work closely with you to understand your financial goals and find the right mortgage product that fits your budget and lifestyle.
2. Competitive Rates: We offer competitive interest rates and loan terms to help you save money over the life of your loan. Our goal is to make homeownership affordable for you.
3. Simple Pre-Approval Process: Getting started on your homeownership journey is easy with Brighton Bank. You can kickstart the pre-approval process today with just a few simple steps.
Start Your Homebuying Journey with Brighton Bank
Ready to take the first step towards homeownership in Texas? Click the button below to begin the pre-approval process with Brighton Bank. Our team is excited to work with you and help you achieve your homeownership dreams!
Local Economic Factors in TX (Texas)
Beyond your mortgage payment, it's essential to consider the local economic factors that can impact your financial stability and property value in Texas:
Employment Opportunities: The availability of jobs and the health of local industries play a role in your financial security and ability to meet mortgage payments.
Market Trends: Real estate markets can experience fluctuations in prices. Our team can provide you with insights into current market trends to assist in your decision-making.
Infrastructure and Development: Development projects, transportation networks, and infrastructure improvements can affect the desirability and value of properties in certain areas.
Property Value Trends: Understanding how property values have changed over time can give you a sense of the potential appreciation of your investment.
Using a mortgage calculator is a simple and efficient way to estimate your monthly mortgage payment. By entering essential details like the loan amount, interest rate, and duration of the loan, you can swiftly determine your monthly payments. It's crucial to note:
Loan Amount (Principal): This is the total amount of money you're borrowing to purchase the property.
Interest Rate: This is the annual interest rate on the loan. Make sure to convert this to a decimal by dividing it by 100.
Loan Term: The loan term is the number of years you have to repay the loan. It's usually expressed in years. Typical loan terms are 15, 20, or 30 years. A longer-term typically results in lower monthly payments but more interest paid over time.
Down Payment: The down payment is the initial amount of money you contribute toward the purchase price of the home. It's usually a percentage of the home's price, and a larger down payment can result in lower monthly payments.
Amortization: Amortization is the process of gradually paying off your mortgage over time through regular monthly payments. Early on, a larger portion of your payment goes toward interest, while later in the loan term, a larger portion goes toward paying down the principal.
Closing Costs: These are the fees associated with finalizing the mortgage and completing the home purchase. They can include things like appraisal fees, attorney fees, title insurance, and more.
Housing Market: The housing market refers to the buying and selling of residential properties. It includes all the activities and transactions related to homes, apartments, and other types of housing.
Mortgage: A mortgage refers to a loan acquired to buy a home, where the property acts as security for the borrowed amount.
Private Mortgage Insurance (PMI): A type of insurance that is often required by lenders when a borrower puts down less than 20% of the home's purchase price as a down payment. It's commonly used to mitigate the increased risk associated with lower down payments.
Debt-to-Income Ratio: A financial metric used by lenders to assess a borrower's ability to manage their debt payments in relation to their income. The DTI ratio helps lenders evaluate the borrower's financial stability and the likelihood of repaying the loan.