What is a Mortgage?
A mortgage is a lien on a property/house that secures a loan and is paid in installments over a set period of time. The mortgage secures your promise that you'll repay the money you've borrowed to buy your home. Mortgages come in many different shapes and sizes, each with its own advantages and disadvantages. Make sure you select the mortgage that is right for you, your future plans, and your financial situation.
Choosing the right mortgage
Once you decide on the mortgage you want, do your homework. Different lenders offer different rates, points, and fees. Ask around and compare. Understanding the benefits of different mortgage offerings can be a complex process. How do you figure it all out?
• Evaluate the pros and cons of a fixed-rate mortgage.
• Know all the parts of an adjustable-rate mortgage.
• Learn about balloon/reset mortgages.
• Understand how a reverse mortgage works.
