Real Estate Terminology for beginners

Real estate terminology encompasses a wide range of terms related to the buying, selling, and ownership of property.
These terms cover various aspects such as property types, legal aspects, financial considerations, and market conditions.

Understanding these terms is crucial for anyone involved in real estate transactions.

We shall gradually cover the various terms in this thread .

Today let’s discuss Mortgage

Mortgage: A loan used to purchase real estate.A mortgage is a loan to purchase a property such as a home or a plot of land. You borrow money to pay for the property and repay it in fixed monthly instalments over 10-30 years. The property purchased acts as collateral for the loan.

https://www.facebook.com/watch?v=1857463751786121

Principal: The actual amount of money you borrowed from the lender, not including the interest.

Interest Rate: The percentage of the loan amount the bank charges you to borrow their money.

Equity: The difference between what your property is currently worth and how much you still owe on your mortgage loan.