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Familiarizing yourself with mortgage terminology is essential for any homebuyer. Terms like 'principal', 'interest', 'escrow', and 'amortization' are commonly used in the mortgage industry.
The principal is the amount borrowed, while interest is the cost of borrowing that money. Understanding how these components affect your monthly payment is vital.
Escrow accounts are used to hold funds for property taxes and insurance, ensuring these payments are made on time.
Knowledge of mortgage terms can empower you in your home buying journey.
