A home loan was financing you are taking off to buy a good household. When you sign a mortgage, your own bank agrees in order to financing your, the borrower, some currency so you’re able to buy your household. Your, in turn, commit to pay-off you to number, when you look at the monthly payments, more a predetermined time frame — constantly 15 otherwise three decades. Keep in mind that many people utilize the terms «financial» and «mortgage» interchangeably.

The monthly mortgage repayment will depend on using prominent amount of your own financing — the sum of the financial allows you to borrow — immediately after which using the rate of interest your loan need so you can you to definitely sum and you can distribute what you owe out over the loan’s cost period. Basically, you could potentially select from a great 15-year otherwise a 30-seasons cost period. To the former, you are able to shell out shorter appeal along side longevity of your property mortgage, but your monthly premiums will be highest. Leer Más →