Pay as much as possible up-front and reduce your monthly installments and interest fees A mortgage or home loan is a type of loan offered 

What is a Mortgage or Home Loan? | Faydety

A mortgage or home loan is a type of loan offered by banks or credit organization to individuals with the purpose of buying a real estate unit. The property itself becomes the collateral for the loan. Some real estate companies will offer this type of loan to their clients under certain terms and conditions.&nbsp;<h2>A mortgage is divided into:</h2>&nbsp;Down payment: a percentage of the of the property’s value that is paid up-front. This amount is deducted from the total value of the property. The down payment is interest free which is why it is advisable to pay as much as possible up-front as it reduces both the remaining principal you have to pay as well as the interest.&nbsp;Financing percentage: most home loans offered by banks will only cover 70-80% of the property value.&nbsp;Duration: the mortgage duration varies according to the type of loan offered by each bank, credit organization, or the real estate company itself but it is usually up to 20 years maximum. If the loan is offered by the real estate company and is without interest (the interest is calculated and already added to the price of the unit) then the loan duration becomes less than if there is an interest fee.&nbsp;Monthly installments: these are monthly payments to pay off the mortgage. This amount depends on the principal of the mortgage (value of the property), length of the loan, and the interest rate.&nbsp;Interest rate: it can be fixed or decreasing according to the type of loan offered by each bank or credit organization and is usually between 15-23%.&nbsp;Fees: just like any loan these are administrative fees you have to pay up-front and are usually between 1.5-2% of the mortgage principal.&nbsp;&nbsp;Fines: these are extra fees you have to pay to the bank if you are late with your monthly payments. The fines are usually between 2-3% of the late payment.&nbsp;

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What is a Mortgage or Home Loan?

Insurance is a contract, in the form of a policy, in which an individual or entity receives financial protection and/or compensation against losses from an insurance company. Insuring something means diverting the burden of payment for its loss from a personal responsibility to one that the insurance company bears on your behalf, in a certain percentage, depending on the type of insurance you have.&nbsp;&nbsp;The insurance company relies on calculating the probability of a loss or damage to an insured asset. If there is a high probability, then the insurance cost tends to be expensive; on the other hand, if the probability is low, the insurance cost tends to be relatively cheaper.&nbsp;Let's start with the basics.&nbsp;<h2>Insurance Policy:</h2>&nbsp;As stated briefly above, an insurance policy is a contract between you and an insurance company. This policy outlines your agreement's details and determines the claims that the insurer is legally required to pay in exchange for a premium. It essentially states that the insurer must pay for any loss or damage caused by risks covered under the policy.&nbsp;<h2>Insurance Premium:</h2>&nbsp;An insurance premium is a certain amount of money that you need to pay periodically in exchange for the maintenance of your chosen insurance policy. If you are unable to pay the premium, the insurance policy will be forfeited. If this happens and you decide you would like to keep your coverage, you may be required to pay a fine or charge a higher premium accordingly.&nbsp;<blockquote>The insurance company relies on calculating the probability of a loss or damage to an insured asset</blockquote>&nbsp;<h2>Types of Insurance:</h2>&nbsp;There are many different types of insurance. Though it is possible to divide them into two basic categories, under which the other types of insurance fall, the two categories are:&nbsp;<h2>Life Insurance / Health Insurance</h2>&nbsp;Life insurance is a contract between you and an insurance company where, in exchange for premium payments paid by you during your lifetime, the company will pay a sum of money to your beneficiaries after your death.&nbsp;&nbsp;Health insurance covers medical expenses that may arise due to illness. These expenses could entail costs of hospitalization, cost of medicines, or medical consultation fees.&nbsp;These insurance types are primarily based on individuals, although some countries go one step further and provide pet insurance. This is because, at times, the cost of medicines and veterinarian visits are higher than the costs of individuals.&nbsp;<h2>Property Insurance / Disaster Insurance</h2>&nbsp;This type of insurance reimburses an individual or business and protects a physical property against loss from theft, fire, natural disasters, etc. Property insurance covers the building or structure itself as well as its contents, whether personal or corporate, including furnishings, inventory, and other items.&nbsp;Get your <a href="https://www.faydetyinsurance.com/en">Insurance Policy</a> Now through Faydety!

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What is a Mortgage or Home Loan?

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A mortgage is divided into:

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