Understanding your mortgage is the first step towards financial freedom. A mortgage is a loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property then serves as collateral to secure the loan.

Key Components of a Mortgage

Principal: The initial amount of money you borrow.
Interest: The cost of borrowing the principal amount, usually expressed as an annual percentage rate (APR).
Term: The length of time you have to repay the loan, commonly 15 or 30 years.
Escrow: An account managed by the lender to pay for property taxes and homeowners insurance on your behalf.

Using our Online Mortgage Calculator can help you break down these components and estimate your monthly payments.