Well, if the area of the apartment was seeing an influx maybe... Depends on the term also, longer loans have a lower rate given a solid collateral, but real estate stops being a way to get up front of the fiat printer, so the lender's assessment would be consequently based on a lower expectation of appreciation of price so maybe the rate would be lower even.
Discussion
What is the collateral?
the downpayment does not reduce the principal until the termination of the contract, meaning that if you put a 25% downpayment on it, that is not in the hands of the lender until the rest of the principal is paid off, it is a margin that is guaranteed to the lender in case of default, and has to be kept in escrow
also, just wanna say this: i keep seeing the word "principle" being used in relation to the amount owing in a bill
principle is more or less a synonym of axiom or rule or law, principal is the responsible party or the amount owed in a loan, or the chief executive of a school
Sorry, principal.
i saw this misspelling, or more accurately wrong word usage in a dictionary you quoted yesterday or so, it's embarrassing to anyone who knows the english language well
Could just be my German spell-check changing things.
pretty sure the word prince and principal are related and that it is most definitely a different word, i think in german it's prinzip, or synonym grundsatz, regel, or element
yes, principal in german is rektor or direktor, haupt- or das Kapital (yes that one), schulleiter
2
(of money) denoting an original sum invested or lent.
"the principal amount of your investment"
the words are closely related but different, and probably the confusion comes out of their close relation, a principle is essential, an element, a thing with controlling influence, but a principal is the ruler or king or basis or collateral
yes, and collateral literally means "from both sides" which implies that the principal is collateral meaning that it only can be released to the lender upon settlement of the contract, ie, it requires fulfillment of the contract