Most Newbie Question- What are the components of a mortgage?

[Alexander Ray]

?: What are the components of a mortgage, is it only interest, principal, tax and insurance? How do I reduce each one of these costs? Does anyone have any strategies they can share? Any Oklahoma based strategies?

Hey everyone out there in BP-land,

I am a total newbie at real estate investing, and I am about to start shopping for my first home. I want to own a primary residence that I can live and flip over the course of two years. In this time, my goal is to, use buy-hold (BRRR) and buy-flip in my area until I have the ability to pay of my primary residence.
I kind of see owning a home free and clear for the wife and kids to live in as my first challenge as a real estate investor.

So, to that end, does anyone have any solid or creative strategies for reducing the four costs that comprise your monthly payments? 

I should add that we are going to buy our first house on a VA loan, we are trying to raise the 20% to eliminate PMI right now, we are looking right now to purchase a home between 70-90k.

Thanks for your time and attention, I appreciate any advice that is out there!

-Alex 

[JD Martin]

Well, you could pay your insurance & taxes yourself, which would negate that part of the monthly payment, but would only mean you'd have a balloon cost at some time during the year. In other words, it doesn't save you any money, but does allow you to allocate your funds a little better than being locked into a larger mandatory payment. 

Not all banks will agree to this, especially if you have no track record. I usually pay my own taxes & insurance on anything I refi, but I do this more for my own record-keeping purposes and ease of action, since all of my properties are in the same areas and most have no mortgagor to pay the insurance & taxes.