When planning to purchase a home, it is important to know the components of the Mortgage:
Mortgage principal is the amount You borrow from Your lender to purchase a home.
Mortgage interest is the rate charged on the loan. It is calculated as a specified percentage of full mortgage principal over a period of time.
Amortization period is the total length of time required to pay off the mortgage balance in full.
Mortgage default insurance (if applicable) Mandatory insurance protecting lender from borrower default. Calculated as a percentage of total loan it varies depending on the amount of downpayment.