Business, Legal & Accounting Glossary
At the beginning of the mortgage, most of the payment is used to cover the interest and only a small amount is paid towards reducing the mortgage. Over the term of the mortgage more and more of the monthly payment is comprised of paying back the capital borrowed.
As long as the monthly payments of repayments are always made on time the mortgage is guaranteed to be paid off at the end of the term.
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Definitions for Capital and Interest Mortgage are sourced/syndicated and enhanced from:
This glossary post was last updated: 15th February, 2020