Key Components of a Residential Mortgage:
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Residential Property Mortgage
Loans for all types of Freehold / Leasehold Residential Properties
Residential Property Mortgage
A residential property mortgage is a loan secured by real estate intended for personal use, such as single-family homes, condominiums, or multi-family residences up to four units. The borrower agrees to repay the loan over a specified period, typically ranging from 15 to 30 years, with interest.
The initial amount borrowed to purchase the property.
The cost of borrowing the principal, which can be fixed or variable.
The length of time over which the loan is repaid
An upfront payment made by the borrower, usually a percentage of the property’s purchase price.
The process of gradually paying off the loan through regular payments.
Types of Residential Mortgages:
The interest rate remains constant throughout the loan term, providing predictable monthly payments.
The interest rate may change periodically based on market conditions, which can affect monthly payments.
For a set period, the borrower pays only the interest, resulting in lower initial payments, but the principal remains unchanged during this time.
A government-backed loan with more lenient qualification requirements, often suitable for first-time homebuyers.
A mortgage option available to veterans and active-duty military personnel, typically offering favorable terms.