Housing Finance (Leaving Cert Home Economics): Flashcards

Cost of borrowing, shown as % of total loan amount

1-5% of outstanding mortgage balance

Typically 2-5 years with constant interest rate

Interest rate can change based on lender's SVR

Interest rate set at fixed % above base rate (ECB/BoE)

3-4.5 times annual salary

5-20% of property value

Record of past borrowing and repayment management

15-35 years

Both capital (original loan) and interest

Interest-only payments + separate investment policy

Pays off remaining mortgage if policyholder dies

Predictable monthly payments, easier budgeting

Better interest rates and more mortgage options