The Most Common Mortgages
The most common mortgage types are ‘Principal and Interest’ and ‘Interest Only.’
Principal and Interest is a loan where you are making payments of the interest for the amount borrowed, plus repaying small amounts of the amount itself (the principal). Therefore the amount of money you owe slowly reduces.
Interest Only is a loan where the only payments you are making are for the interest itself. The amount of money you owe remains unchanged.
