Principal,
Interest, and Term
Principal
The
principal
of your mortgage is the amount you owe on the money you have borrowed
from a lender.
Interest
The
interest
is what the lenders charge you to borrow their money. The interest adds
up over time and is reflected in the form of an interest rate. Keep in
mind, the interest you pay on your mortgage is tax
deductible.
Term
The
term
is the amount of time the lender allows you to pay back the money you
borrowed. Keep in mind, large loans obviously have long terms, while smaller
loans have shorter terms.
Points
Good
Faith Estimate
Rate
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