Let's start with the basics. A mortgage is nothing more than a loan that you obtain to close the gap between the cash you have for a down payment and the purchase price of the home that you're buying.
Mortgages undoubtedly constitute the biggest component of the total cost of owning a home. A mortgage is nothing more than a loan you take out to buy a home. This section covers the basics of how a mortgage works.
Fixed or Adjustable?
Like other financial and investment products, there are many different mortgage options available. Two fundamentally different types of mortgages exist, and they differ in terms of how their interest rate is determined.
Homeowner's insurance is mandatory. When you purchase a home, your mortgage lender won't allow you to close the purchase until you've demonstrated that you have proper homeowner's insurance.