10 Essential Terms Every Homebuyer Should Know About Mortgages

When starting the journey to homeownership, understanding mortgage terms is crucial. A mortgage isn’t just a loan; it’s a complex financial arrangement. Key terms include **principal** (the amount borrowed), **interest rate** (the cost of borrowing), **APR** (annual percentage rate, reflecting the total cost), **escrow** (account for property taxes and insurance), **amortization** (the loan repayment schedule), **down payment** (initial upfront payment), **closing costs** (fees at loan finalization), **fixed-rate** (constant interest rate), **adjustable-rate** (variable interest rate), and **loan term** (length of the loan). Mastering these terms will empower you to make informed decisions. Readmore