Basics of Mortgage

A Mortgage can be defined as the loan one take out to pay for a property. The mortgage loan is divided into capital and interest. Capital means the amount actually borrowed, and the interest is the amount the mortgage lender charges for the privileges of borrowing. The two main types of Mortgages are: Repayment mortgages and Interest only mortgages. In Repayment mortgages one needs to pay the capital along with the interest. On the other hand, in Interest only mortgages one pays just the monthly interest and the final capital amount at the end of the mortgage term.