IK Financial Metarials
Mortgage Glossary

Mortgage 101 - Mortgage Components

What are the components of the mortgage?

A mortgage usually consists of four components:
🔹 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. 

If You would like to know your Purchase or Refinancing options, feel FREE to contact IK Financial Team:
Inna Bogdanov 416.268.0004 | Inna@ikfinancial.com
Katerina Markevich 416.388.8153 | Katerina@ikfinancial.com