Make Sense Of Home Finance Lingo
If you’ve never bought a house before, approaching home loans for the first time can be a bit daunting.
This can especially be the case if you decide to do a bit of your own research before engaging the expert advice of mortgage brokers.
You might come across a few new terms when reading about home lending, so here is a short glossary to clear some things up!
This is the total balance of your loan, minus interest and other fees.
Interest is the fee the lending institution charges you for your loan, paid over the term of the loan.
This is the money that you have in your home - the difference between its market value and the outstanding balance of your loan.
A mortgage is not the same thing as a home loan, believe it or not!
In fact it is a legal document which the borrower gives the lender as security until their loan is repaid.
Discharge of mortgage
This is what happens when you finish paying off your loan. Closely followed by a discharge of mortgage party!
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.