Dictionary of Business Terms: budget mortgage
budget mortgage
a mortgage that requires monthly payments for taxes and insurance in addition to interest and principal.
Dictionary of Real Estate Terms: budget mortgage
budget mortgage
a mortgage that requires monthly payments for taxes and insurance in addition to interest and principal.
Example: Abel borrows $200,000 on a budget mortgage at 8% interest. His monthly mortgage payment is $2,000, which consists of $1,467 principal and interest, $450 taxes, and $83 insurance.
