Mortgage
A long-term loan secured by real property, used to finance the purchase of a home or investment property, typically repaid over 15–30 years.
A mortgage is the largest financial commitment most people make. The property serves as collateral — if you stop paying, the lender can foreclose. Key mortgage decisions include: fixed vs. variable rate, loan term (shorter terms mean higher payments but less total interest), and down payment size (which affects your LTV ratio and whether you need mortgage insurance). The total cost of a mortgage over its lifetime can be 1.5–2x the original loan amount due to interest. Extra payments toward principal can dramatically reduce total interest paid and shorten the loan term. Assetli's mortgage calculator helps you compare scenarios and optimize your repayment strategy.
Example
A $300,000 mortgage at 5.5% fixed for 30 years: monthly payment $1,703. Total paid over 30 years: $613,000 — $313,000 in interest alone. At 15 years: $2,451/month but only $141,000 in interest.
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Related terms
LTV (Loan-to-Value Ratio)
The ratio of the loan amount to the appraised value of the property, expressed as a percentage. Lower LTV means less risk for the lender.
Amortization
The process of gradually paying off a loan through regular payments that cover both principal and interest, with early payments being mostly interest.
APR (Annual Percentage Rate)
The annualized cost of borrowing expressed as a percentage, including interest and mandatory fees, used to compare loan products.
Interest Rate
The percentage charged on borrowed money or earned on deposited/invested money, expressed as an annual rate.
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Rental Yield
The annual rental income from a property expressed as a percentage of its purchase price or current market value.
Debt-to-Income Ratio
The percentage of your gross monthly income that goes toward debt payments, used by lenders to assess borrowing capacity.
Creditworthiness
A lender's assessment of how likely you are to repay borrowed money, based on income, debts, and payment history.
Refinancing
Replacing an existing loan with a new one, usually to secure a lower interest rate or better terms.
Interest Rate Fixation
The period during which a loan's interest rate stays fixed before it is reset to current market rates.
Annuity Payment (Installment)
A fixed regular payment that fully repays a loan over its term, blending interest and principal in each instalment.