A mortgage is a type of loan that consumers use to purchase a home and agree to pay a small, equal monthly amount over a specified period of time or term. For most homebuyers, the mortgage process is an important part of the home ownership experience, but if you're going through it for the first time, it can be a lot to wrap your head around. Find out everything you need to know about mortgages, how they work and what your monthly payments include.
When should I get a mortgage?
In other words, getting a mortgage is when you buy a house, but you can't pay the entire price of the house in full and up front. Think about this: If you are looking to buy a house, you don't want to pay the full price of the house right there and in cash.
A way to get around this large one-time transaction is to offer to pay a portion of the home's value—called a down payment—while taking out a loan from the bank to cover the rest of the home. The money you borrow from the bank (mortgage) must be paid back with interest, and you can fill the house and renovate it as you wish. In other words, a time mortgage is when you buy a house, but you can not pay the entire price of the house in full and up front. Think about this: If you are looking to buy a house, you don't want to pay the full price of the house right there and in cash.
A way to get around this large one-time transaction is to offer to pay a portion of the home's value—called a down payment—while taking out a loan from the bank to cover the rest of the home. The money you borrow from the bank (mortgage) must be paid back with interest, and you can fill the house and renovate it as you wish.
Post a Comment