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What is Mortgage | |
Types of Mortgages | |
Pre-Approved Mortgages | |
Mortgage Features |
A mortgage is a
loan that uses a property as security to make sure that the debt is repaid.
A mortgage is made up of two parts: principal and interest. Principal is the
actual amount borrowed. Interest is the lender's fee you are charged for borrowing.
You'll have to decide on an amortization period (the length of time it will take to completely pay off the mortgage) and the term, or length of time each mortgage agreement guarantees the interest rate.
Down Payments
Prior to getting a mortgage, consider how much down payment can you make. If you're a qualified home buyer, you can purchase a house with a minimum 5% down payment. Generally, if the interest rates are high people try to put more towards a down payment in order to lower their monthly payments. In contrast, if the interest rates are low then it may be more yielding to invest that extra money somewhere else for higher returns.
