4 Quick Points to Simplify a Mortgage
A type of loan used to purchase real estate
A mortgage is a loan you use to purchase real estate, such as a house or land. When you sign off on a mortgage, the lender agrees to loan you the money, and you agree to repay the mortgage over a period of time. In exchange for the mortgage, you make monthly payments to the lender, which include principal and interest.
Here are four quick points to simplify a mortgage and how it works:
1. What Is a Mortgage?
2. How Does a Mortgage Work?
3. What Are the Different Types of Mortgages?
4. How to Get a Mortgage
1. What Is a Mortgage?
A mortgage is a type of loan that you take out to buy real estate, such as a house or land. When you have a mortgage, a lender has agreed to loan you money, and you have agreed to repay the loan over a period of time, typically 15 or 30 years. In exchange for the loan, you make monthly payments to the lender, which include principal and interest. The principal is the amount of money you borrowed, and the interest is the cost of borrowing the money.
2. How Does a Mortgage Work?
When you take out a mortgage, the lender gives you a lump sum of money that you…
