For many Americans, a mortgage loan is the biggest financial commitment they will ever make. Home ownership is impossible for most people without the use of a mortgage, and because of the huge financial commitment a mortgage loan represents it can be very beneficial to understand the terminology used by banks.
A mortgage loan is made up of a number of elements, namely:
- Property – the home or residence being financed by the loan.
- Principal – the initial loan taken by the borrower. As the borrower repays the loan, the remaining principal will reduce in size.
- Interest – the charge applied by the lender for allowing the borrower to use its money.
- Repossession or foreclosure – if the borrower is unable to repay the loan, the lender can take possession of the property being financed, allowing them to recoup their loss.
Being familiar with the basic aspects of a mortgage can help you protect your investment.
Mortgage loans are incredibly important to you and your family, and missing more than a few payments can put you in severe jeopardy of losing your home. To learn more about how the Milwaukee foreclosure defense attorneys at the DeLadurantey Law Office, LLC may be able to work to protect your home and investment, contact us today by calling 414-377-0518.