So i really don't know what a mortgage is somebody please tell me
2007-01-06 14:50:46 · 8 answers · asked by Raphael M 1 in Business & Finance ➔ Other - Business & Finance
Ok. Relax and take a deep breath.
You want a house for $100,000, but you don't have all that money. You decide to use your savings and that's $20,000.
So you go to a bank, credit union, or mortgage broker and you compare who has the best offer to LEND YOU THE REST OF THE MONEY, AND THAT'S A MORTGAGE.
So you borrow $80,000 to use as the rest of the money that goes to the seller since the seller has agreed to sell the house to you for $100,000. You may get a mortgage for 6.75%, 30 years, and are paying back part of the $80,000 you're buying, plus interest for 30 years, and the bank or credit union will tell you how much you will pay each month and that is $518.88 per month for 30 years,
http://www.mortgage-calc.com/mortgage/simple.php.
Don't forget you also have to pay insurance and taxes on the home, plus all of your maintenance and utility costs to have a nice home. Welcome to the American dream!
You also get a $3,000 gift from your parents because you are so smart to buy a house, and that's used for closing costs to get the mortgage and to pay for the others costs associated with buying your home.
I hope that helps.
GOD bless us one and all, always.
MBA-Boston Univ.
CPA-retired
also sold real estate working my way through college!
2007-01-06 15:28:47 · answer #1 · answered by May I help You? 6 · 0⤊ 0⤋
It's a loan of money to buy a place of residence or piece of land.
You want to buy a house, for example. If you don't have the money, you visit a lending company and apply for a mortgage.
the mortgage is set up so that you make monthly payments over a period of years (10 - 20 - 30 - whatever you set up). For the first years, you are paying mainly intrest on the mortgage. As the years go by, the intrest percentage lowers and the principle (actual equity in your home) increases.
2007-01-06 14:53:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A mortgage is a loan to finance the purchase of real estate, usually with specified payment periods and interest rates. The borrower (mortgagor) gives the lender (mortgagee) a lien on the property as collateral for the loan.
2007-01-06 14:54:35 · answer #3 · answered by Charles S 1 · 0⤊ 0⤋
A mortgage is a loan that is backed by your house as the security. So, if you do not pay your mortgage payment then they can take your house ...which, in turn, was your collateral
2007-01-06 14:55:18 · answer #4 · answered by fade_this_rally 7 · 0⤊ 0⤋
Technically, and in the simplest terms, a mortgage is a loan.
If you wanted to buy a house, but didn't have all the money upfront, you would go to the bank.
The bank loans you the money to purchase the house and then you pay the bank back with interest.
2007-01-06 15:01:13 · answer #5 · answered by scromlette213 3 · 0⤊ 0⤋
A mortgage is a loan homeowners get through a bank. They use their homes as collateral. It's great if you need to pay off mounting bills but you have to be careful. If you don't pay off your mortgage according to the banks' terms, you could lose your home.
2007-01-06 14:53:23 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Mortgage is derived from
Mort--meaning dead(from a latin word mortus)
Gage--meaning more at murder
Mortgage is a usually a real estate loan that you end up paying for in your lifetime, until you die. A majority of mortgages are for 15 yrs/20yrs/30 years and obviously can be financially murderous, LOL.
2007-01-06 14:56:54 · answer #7 · answered by Muga Wa Kabbz 5 · 0⤊ 0⤋
It is a loan you take out to buy a home, using the home itself as collateral. You make a monthly payment on the home, but if you miss payments you will loose the home.
2007-01-06 14:52:36 · answer #8 · answered by texascrazyhorse 4 · 1⤊ 0⤋
payments on your house.
2007-01-06 14:52:00 · answer #9 · answered by coko823 3 · 1⤊ 0⤋