Definition of Mortgage interest:
The term mortgage interest is the interest charged on a loan used to purchase a piece of property. The amount of interest owed is calculated as a percentage of the total amount of the mortgage issued by the lender. Mortgage interest compounds and may be either fixed or variable. The majority of a borrower's payment goes toward mortgage interest in the earlier part of the loan.
Most consumers require a mortgage in order to finance the purchase of a home or other piece of property. Under a mortgage agreement, the borrower agrees to make regular payments to the lender for a specific number of years until the loan is either repaid in full or it is refinanced. The mortgage payment includes a principal portion plus interest. Mortgage interest is charged for both primary and secondary loans, home equity loans, lines of credit (LOCs), and as long as the residence is used to secure the loan.
Amount of money a home mortgage borrower pays to the mortgage lender in exchange for providing the money to purchase the borrowers home. Mortgage interest paid is tax deductible.
How to use Mortgage interest in a sentence?
- Mortgage interest may be fixed or variable and is compounding.
- Interest is calculated as a certain percentage of the full mortgage loan.
- Mortgage interest is the interest charged on a loan used to purchase a piece of property.
- Taxpayers can claim mortgage interest up to a certain amount as a tax deduction.
Meaning of Mortgage interest & Mortgage interest Definition