What is a mortgage?
May 20th, 2008 by admin
A morgage (also called a homeloan) is a loan agreement that enables you to borrow money to buy a real estate or other property. This property is used as security for the mortgage. The lender may take possession of the real estate or other property if the mortgage cannot be repaid. A person may obtain a homeloan any financial institution that offers. A standard mortgage includes a Principal (unpaid morthage amount) and interest over a 25 year period. Depending on the mortgage agreement, the homeloan may come at either a variable or fix interest amount.
As you pay off the morgage initially a large portion of your mortgage repayment will go towards the interest. However as the borrower pays off the mortgage, more of the each monthly payment goes to the principal and less towards the interest eventually paying off the homeloan