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Know the Terms Used in Mortgage Loans

Mortgage is the debt taken against any property. There are many terms which one needs to get familiar with when you are planning to apply for a mortgage. Let us know more about these terms. Principal: Principal is the amount which is borrowed by you from the financial institution. You many also be asked to pay a down payment once the loan gets approved. Interest: This is one of the important factors one needs to be careful about. It is the percentage of amount borrowed by you which is charged by the lender for you to use the money borrowed.

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The monthly installments which are paid by you are mostly calculated upon the principal and the interest. Tax: The tax levied depending upon the cost of your property. The taxes are collected by the communities for their improvements like for the building of schools, roads and for any other basic needs. You can try mortgage payment calculator if you haven't already.

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Posted in Real Estate Post Date 01/10/2016


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