Buying a House Understanding Mortgages and Financing Options
Buying a house is a significant financial decision that often involves securing a mortgage to fund the purchase. Understanding the basics of mortgages and exploring different financing options can help you make informed choices and navigate the home- buying a house mortgage process with confidence. What is a Mortgage? A mortgage is a loan provided by a lender, typically a bank or mortgage company, to help finance the purchase of a home. The borrower (homebuyer) agrees to repay the loan amount plus interest over a specified period, usually 15 to 30 years. The property serves as collateral for the loan, meaning the lender can seize it if the borrower fails to make payments. Types of Mortgages Fixed-Rate Mortgage: With a fixed-rate mortgage, the interest rate remains constant throughout the loan term, providing predictability and stability in monthly payments. Ideal for homebuyers who prefer consistency and want to lock in a predictable payment amount. Terms typically ra...