Here is the following words of our little real estate and home mortgage loan glossary.
Open home mortgage loan: Allows partial payment or total repayment of all borrowed money at any time without incurring penalties.
Renewal: Renegotiation of the home mortgage loan at the end of its validity period for a further period.
Interest rate: Amount charged by the bank for the use of its money to buy a house. The rate is expressed as a percentage.
Portability: Option that enables you to transfer your current home mortgage on another property without penalty.
Mortgagor: Borrower.
Mortgage Insurance: For a high ratio mortgage loan, this insurance protects banks against money loss if the borrower is unable to repay the house.
Home mortgage life insurance: Insurance that repays the entire home mortgage loan in case of death of the borrower.
Pre-approved mortgage: Amount of the loan that bank gives you permission to use before starting your research house. So, you know exactly how much you can spend.
Prepayment Privilege: Optional repayment in addition to regular repayments.
Capital: Amount that remains to pay on your house. The interest is paid on capital.
Refinancing: To pay the balance of the current mortgage loan with the new one you take. Home mortgage refinancing helps you to borrow more money or to renegotiate the terms of your loan.
Term: Period during which the applicable loan has to be repaid after which it could be renegotiated.
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