what is mortgage?

Answer 1

In plain english, its where you don't have lots of money right now to buy your own property. So you need to borrow money from a lender and the lender will charge you monthly interest on it. The lender can repossess your property if you fail to make your payments. There are many types of mortgages out there. So be careful on what you are getting. You don't want to end up with many homeowners who had to foreclose their home because the mortgage payment went up. If they all got fixed rate, most of them would still be living in their home today.

Answer 2

A bank or other lender gives you the money for a home or property and you agree to pay it back within a certain set period of time.

I always recommend people considering a mortgage to get a 15 year fixed rate mortgage. 15 years means that it will pay off in 15 years. This is better than the traditional 30 year mortgage because you pay much less than HALF the amount of interest on the loan. Fixed rate means that the mortgage rate will never change during the loan. Some mortgages have an adjustable rate, but I would stay away from those because if loan rates start going up, so will you mortgage rate and that means higher payments that you might not be able to afford.

Hope that helps.

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Answer 3

A mortgage is loan which is secured by property, usually real estate such as a house or land. Usually mortgages are loans which are amortized over many years, 10 - 40 or more. During this period, the payments are arranged so that a portion of the principal is continually and progressively paid off with the interest on the declining outstanding balance. But,.... there are many ways to calculate it and lately, all sorts of variable ways or arranging the amount, interest and payback schedule.

Answer 4

A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.