A mortgage lets you buy now and pay over time. Understanding how it works helps you borrow smart and avoid surprises.
What drives your monthly payment
- Loan amount (price minus your down payment)
- Interest rate
- Loan term (number of years)
A larger down payment and shorter term reduce total interest, while a longer term lowers the monthly amount but costs more overall.
Ask Abay AI to estimate monthly payments for any price and term — it uses standard amortization to give you a quick figure in ETB.
Preparing your application
- Stable, documented income
- A healthy down payment saved up
- Clean credit and manageable existing debt
- Property documents in order
A caveat
Rates and terms vary by bank and change over time. Always confirm final figures with your lender before committing.
#mortgage#financing#banks#down payment
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