The cost of borrowing money is known as interest. It is typically paid to the lender in regular installments, along with the repayment of the principal amount (the original loan). Interest compensates the lender for the risk and opportunity cost of lending money. The rate of interest can vary based on factors like creditworthiness, loan type, and market conditions. Understanding interest is crucial for managing loans effectively.

*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*

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