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Utah
Mortgages
Utah Mortgages
Types
of Utah Mortgages >
Capital & Repayment Utah Mortgages
- This is the old fashioned, traditional type of mortgage and
remains the only way the property is actually guaranteed to be
yours at the end of the mortgage term- provided you have repaid
the loan.
- Your mortgage debt is divided into capital repayments (ie repayment
of the money you borrowed) and interest payments (ie repayment
of the interest you're being charged for the loan).
- As you pay off your mortgage every month you're paying off
a bit of capital and a bit of interest until the full debt is
repaid.
- You usually pay off mostly interest in the early years and
then gradually more of the capital debt. It may seem as if this
is costing more but that's because unlike the other types of mortgages
you're paying off the capital and not just the interest.
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