Page 169 - The-Mortgage-Maximiser-Method-by-Thomas-Ilinkovski

I

Instalment: dŚĞ ƌĞŐƵůĂƌ ƉĞƌŝŽĚŝĐ ƉĂLJŵĞŶƚ ƚŚĂƚ Ă ďŽƌƌŽǁĞƌ ĂŐƌĞĞƐ ƚŽ ŵĂŬĞ ƚŽ
the lender.

Interest: The amount you are charged for the money advanced to you by a
lender.

/ŶƚĞƌĞƐƚͲŽŶůLJ ůŽĂŶ͗ ůŽĂŶ ŝŶ ǁŚŝĐŚ ƚŚĞ ďŽƌƌŽǁĞƌ ƉĂLJƐ ŽŶůLJ ƚŚĞ ŝŶƚĞƌĞƐƚ ĨŽƌ
ƐŽŵĞ Žƌ Ăůů ŽĨ ƚŚĞ ƚĞƌŵ͕ ǁŝƚŚ ƚŚĞ ƉƌŝŶĐŝƉĂů ďĂůĂŶĐĞ ƌĞŵĂŝŶŝŶŐ ƵŶĐŚĂŶŐĞĚ
during the interest-only period. The principal is then repaid over the
remaining term of the loan by the conversion of repayments to Principal and
Interest.

Interest rate: dŚĞ ƌĂƚĞ Ăƚ ǁŚŝĐŚ ŝŶƚĞƌĞƐƚ ŝƐ ĂƉƉůŝĞĚ͘

Introductory loan: ůŽĂŶ ǁŚich ŝƐ ŽīĞƌĞĚ Ăƚ Ă ƌĞĚƵĐĞĚ ƌĂƚĞ ĨŽƌ ĂŶ ŝŶŝƟĂů period
;ƵƐƵĂůůLJ 1-3 yearsͿ ƚŽ ŶĞǁ ďŽƌƌŽǁĞƌƐ͘ ůƐŽ ĐĂůůĞĚ Ă ĚŝƐĐŽƵŶƚĞĚ Žƌ ŚŽŶĞLJŵŽŽŶ
rate.

/ŶǀĞƐƚŵĞŶƚ ƉƌŽƉĞƌƚLJ͗ ƌĞĂů ĞƐƚĂƚĞ ƉƌŽƉĞƌƚLJ ƉƵƌĐŚĂƐĞĚ ǁŝƚŚ ƚŚĞ ŝŶƚĞŶƟŽŶ ŽĨ
ĞĂƌŶŝŶŐ Ă ƌĞƚƵƌŶ ŽŶ ƚŚĞ ŝŶǀĞƐƚŵĞŶƚ ĞŝƚŚĞƌ ƚŚƌŽƵŐŚ ƌĞŶƚĂů ŝŶĐŽŵĞ͕ ƚŚĞ ĨƵƚƵƌĞ
ƌĞƐĂůĞ ŽĨ ƚŚĞ ƉƌŽƉĞƌƚLJ͕ Žƌ ďŽƚŚ͘

J

Joint tenants: WĞŽƉůĞ ǁŚŽ ŚŽůĚ ĂŶ ĞƐƚĂƚĞ Žƌ ƉƌŽƉĞƌƚLJ ǁŝƚŚ ŽŶĞ Žƌ ŵŽƌĞ
ƉĂƌƟĞƐ͕ ƚŚĞ ƐŚĂƌĞ ŽĨ ĞĂĐŚ ƉĂƐƐŝŶŐ ƚŽ ƚŚĞ ŽƚŚĞƌ Žƌ ŽƚŚĞƌƐ ŝŶ ƚŚĞ ĞǀĞŶƚ ŽĨ ĚĞĂƚŚ͘

L

Lease: ĚŽĐƵŵĞŶƚ ŐƌĂŶƟŶŐ Ă ƉĞƌŝŽĚ ŽĨ ƚĞŶĂŶĐLJ ŽĨ Ă ƉƌŽƉĞƌƚLJ ƵŶĚĞƌ ƐƉĞĐŝĮĐ
ƚĞƌŵƐ ĂŶĚ ĐŽŶĚŝƟŽŶƐ͘

>ĞŶĚĞƌƐ DŽƌƚŐĂŐĞ ŝŶƐƵƌĂŶĐĞ͗ This insurance is taken out by the lender to
ĐŽǀĞƌ ƚŚĞŵƐĞůǀĞƐ ŝŶ ƚŚĞ ĞǀĞŶƚ ƚŚĂƚ ƚŚĞ ďŽƌƌŽǁĞƌ ĚĞĨĂƵůƚƐ ŽŶ ƚŚĞŝƌ ůŽĂŶ ĂŶĚ
the sale of the property is unable to cover the outstanding debt. Mortgage
ŝŶƐƵƌĂŶĐĞ ƉƌĞŵŝƵŵƐ ĂƌĞ ƵƐƵĂůůLJ ƉĂŝĚ ďLJ ƚŚĞ ďŽƌƌŽǁĞƌ ǁŚĞŶ ƚŚĞ ĂŵŽƵŶƚ
ďŽƌƌŽǁĞĚ ŝƐ ŽǀĞƌ ϴϬй ŽĨ ƚŚĞ ƉƌŽƉĞƌƚLJ ǀĂůƵĞ͘ dŚĞƌĞ ŝƐ ŶŽ ƉƌŽƚĞĐƟŽŶ ĨŽƌ ƚŚĞ
ďŽƌƌŽǁĞƌ͘

168