Key Facts About Mortgage Loans

A mortgage requires a borrower to pledge their home as security for the repayment of a loan. The lender agrees to hold the title to a property (or in some states, to hold a lien on a title) until the borrower has paid back the loan plus interest. 

Principal & Interest

All Mortgages have two features in common:

Principal: The principal is the actual amount borrowed. For example, if you take out $200,000 mortgage, your mortgage principal is $200,000.

Interest: The interest is the money paid for the use of the money lent. Interest rates are highly volatile and how much interest amount you pay over the mortgage loan depends upon many different factors. We can help you find the best loan for your needs. 


This is the period in which a debt is reduced or paid off by regular payments. During the first few years, most of your payments will be applied toward the interest you owe. During the final years of your loan, payment amounts will be applied more to the remaining principal. This is called amortization. If you sell your home, you will be required to pay back any remaining principal balance.

Four major factors that affect your mortgage payments

The price of the house is determined by location, size, features (such as a garage, a deck, an extra bathroom, extra master bedroom), overall condition, and market factors. Four factors can affect the size of your payment:

  1. The size of your down payment,

  2. The amount you borrow,

  3. The interest rate, and

  4. Repayment terms.

A change in any of these four factors will influence how much house you can afford. It’s important to understand each of these four factors and how they influence each other. If you have questions, call us at 443-398-0711 or click the button below to apply online.

Apply Now