Dec

3

Home Buyers Glossary Part 3 of 3

Filed Under Buying, Glossary, Mortgages, Special Reports 

The last section of our Home Buyers Glossary…

PRINCIPAL:
The amount borrowed or still owing on a mortgage loan. Interest is paid on the principal amount.

REFINANCING:
Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage.

RENEWAL:ImageShack
Re-negotiation of a mortgage loan at the end of a term for a new term.

SECOND MORTGAGE:
Additional financing. Usually has a shorter term and higher interest rate than the first mortgage.

TERM:
The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender.

TITLE:
Legal ownership in a property.

VARIABLE-RATE MORTGAGE:
A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal.

VENDOR TAKE-BACK MORTGAGE:
When the seller provides some of all of the mortgage financing in order to sell their property.

So that does it for our Home Buyers Glossary… If you have any questions, please let us know at www.JustAskJared.com

If you have and real estate needs, please give us a call today!

Regards,

Jared & Rebecca Chamberlain
www.ChamberlainGroup.ca
Email Us!
403-247-5171

Comments

Leave a Reply