Updated: Aug 4, 2021
Most people take on this type of home loan. You make regular repayments on the amount borrowed (the principal), plus you pay interest on that amount. You pay off the loan over an agreed period (loan term), for example, 25 or 30 years.
The interest rate on a standard home loan will often be cheaper than a more sophisticated loan that offers additional features.
Fixed, variable and partially fixed rate loans are all variations on standard principal and interest loans. There will always be penalties for paying out the fixed rate portion of a loan early.
Speak to your mortgage broker today about principal and interest repayments.
The Newstead Group Team