PERSONAL LOANS – MORTGAGE INFORMATION
What Is a Mortgage?
A mortgage is a loan to finance the purchase of your home. It is one of the largest and most important personal investments that you will make. Your home serves as the collateral for the loan that you agree to pay back over a 15- to 30-year period.
Loan payments typically include:
• Principal: The portion of the house price financed by your financial institution.
• Interest: The percentage the financial institution receives for lending you the money.
• Property Tax: The local government tax fee, based on percentage of the assessed value
of your home.
• Mortgage Insurance: Insurance coverage designed to protect the financial institution
against home purchasers who do not make their mortgage payments. (Applicable
only when the down payment is less than 20% of the purchase price of the home.)
• Homeowner's (Hazard) Insurance: Required coverage that protects your home
investment in case of fire, burglary, etc. by funding the rebuilding or replacement of damaged or stolen property.
What type of loan is best for you?
There are various types of home mortgages. Each mortgage loan is designed to meet specific financial and timeline needs for the borrower. To make sure you select the right loan for you, talk to one of the home loan specialists at Bank of Luxemburg.