mortgage-interest

Vocabulary Word

Definition

Mortgage-interest is the charge on top of the loan you get from the bank to buy a property. It's a percentage of the loan amount and it's how banks make money from lending you money.

Examples in Different Contexts

In refinancing, homeowners might seek to lower their 'mortgage interest' rate to reduce monthly payments. A financial advisor might note, 'Refinancing your mortgage at a lower interest rate can save you thousands over the life of your loan.'

Practice Scenarios

Banking

Scenario:

We offer competitive rates, flexible terms, and personalized service for our mortgage loans.

Response:

That sounds great, can you also explain how the mortgage-interest is calculated on the loans you provide?

Tax

Scenario:

Home ownership comes with some significant tax advantages. You should keep track of all your related expenses.

Response:

Would the tax deduction on mortgage-interest offset the high cost of the house to some extent?