F.A.Q.
Supporting Subheading
Monthly payments are divided between repaying the principal (the amount borrowed) and paying interest. Early in the term, a larger portion of the payment goes toward interest.
Payments are usually made monthly and consist of both principal and interest. Some loans might have different repayment schedules or structures.
The property you buy or refinance is used as collateral. If you default on the loan, the lender has the right to foreclose on the property.
Most home loans require a down payment, which is a percentage of the home’s purchase price. The size of the down payment can affect your loan terms and monthly payments.
You borrow a lump sum from a lender to buy a property. You repay the loan in monthly installments over a set term, which includes both principal (the amount borrowed) and interest.