Quick Guide to 'Mortgages'

Common terms used in Mortgages & Home Loans
Principal: This is the term used to describe the amount of money that is borrowed for the mortgage. The principal amount that is owed will go down when borrowers make regular monthly payments.

Interest Rate: This is the interest rate for the mortgage you will receive from your lender

Downpayment: This is the amount of money you will put towards a down payment on the house. Most mortgage lenders require cash down payment of 10 percent or 20 percent of the sale price.

Mortgage Term: This is the length of time you choose to pay off your mortgage (e.g. 10 years, 20 years, 30 years, etc.)