Common Mortgage Terms

When you find yourself trying to get a mortgage – especially if you're doing it for the first time – all the terminology can be confusing. But it's important that you understand the basics, since your mortgage loan is one of the biggest economic decisions you'll ever make. Fortunately, once you have the words decoded for you, it's pretty easy to understand how they all fit together to define your loan. If you've taken out a mortgage loan and are having a hard time making the payments, contact the Maryland mortgage modification attorneys of Chaifetz & Coyle, P.C. by calling 443-546-4608.

The Terms

Mortgage loans are described by a series of common terms, which you'll need to know if you want to understand how your loan will be structured and what is expected of you as you pay the loan back. These terms can inform the nature of the loan:

• The property. This one's straight-forward: the property is the house being financed by the loan.
• The borrower. That's you, the person taking out the loan.
• The lender. The lender is the person or institution that is providing the loan. Usually, the lender is a bank or mortgage firm.
• The principal. The principal is the size of the original loan, which will gradually be paid off as you make your monthly mortgage payments.
• The interest. The interest is the amount you pay in addition to the principal. The interest is how the lender makes money off the loan.

Contact Us

By understanding these terms, you'll be better able to make an educated decision about your loan. However, even if you made a responsible decision when you took out your mortgage loan, economic factors outside your control can make it difficult to make your payments. If this sounds like you, contact the Maryland mortgage modification lawyers of Chaifetz & Coyle, P.C. by calling 443-546-4608 today.