Calculating Morgage Payments Exp.2 (Chapter1)

• Amortization period - the length of time in years that you will need to pay off a morgage.
• Equity - the portion of the value of your property that you own.
• Interest - the cost of borrowing money.
• Principal - the amount you initially borrow.
• Unpaid balance - the portion of the value of your property owed to the financial institution.
• Closed mortgage - a mortgage which does not allow payments on the principal.
• Fixed-rate mortgage - a mortgage with the interest rate locked in for a specified period of time.
• Open mortgage - a mortgage that allows additional payments on the principal.
• Variable-rate mortgage - where the interest rate may change from month to month.