Principal and Interest Details
What is the Interest Rate?
What is the Interest Adjustment Date?
Frequently Asked Questions
How much should the Principal be?While the Principal amount will depend on the specific needs of the individual parties, there are certain factors about the Mortgagor that a Mortgagee should consider when deciding on the value of the loan.
Factors to consider include the Mortgagor's:- Occupation/yearly income
- Credit history
- Other debts/repayment history
- Savings
Other factors that should also be considered include, the market value of the Mortgagor's specific property, the current and anticipated state of the economy, and the prime lending rate (the interest rate used by banks).
Note that in the event of default, depending on your jurisdiction, the amount the Mortgagee can recover may be limited to the proceeds from a foreclosure sale. As such, the Principal amount should always reflect the value of the Property. What is the Interest Adjustment Date?The Interest Adjustment Date is the date that the Mortgage term begins (the money is provided to Mortgagor) and interest starts being charged.