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Frequently Asked Questions
A mortgage payment consists of the principal and interest. The principal is the money you owe on the loan, while the interest is the bank’s fee for lending you the money in the first place.
Every month you make a mortgage payment; each payment goes toward interest and principal on the loan.
Well the sooner you pay off the loan, the less interest you have to pay, and the more money you save. However, some lenders do charge early repayment fees, so it can depend on your mortgage terms.
It depends. Some mortgage lenders charge an early repayment fee (also called a break fee) if you pay off your mortgage before the agreed term — especially during your fixed-term.
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