February 2019

28 Feb 2019

What is a mortgage?

what-it-a-mortgage
It's a good idea to know the ins and outs of a mortgage before you sign one, so let's dive into what it is, what it's made of, and how to pay it off. Simply put, a mortgage is a real estate loan. You get a mortgage from a bank or lender that allows you to purchase a home, and that new home serves as collateral for the loan. This means the bank or lender can take your house back if you fail to pay off the loan according to the terms of the mortgage. A monthly mortgage payment has four pieces: principal, interest, insurance and taxes. What is principal? The principal is the total amount you borrowed, less any payments you've made toward that amount....
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