A mortgage is a loan provided by a mortgage lender or bank that enables an individual to purchase a home. These loans must be paid back overtime. The home purchased acts as collateral on the money an individual is lent to purchase the home. Most times individuals are allowed to loan upto 80% of the total value of the house.
Types of mortgages
There are basically two types of mortgages, they are as follows
1. Fixed rate mortgage
This is the kind of mortgage whose loan repayment interest is fixed, let's say there is a 20% interest on the loan, one will need to pay that fixed interest till the loan payment is finished. They normally lasts for 10, 15 or 20years repayment plan.
2. Adjustable mortgage rate
This type of mortgage utilities a changeable interest rate on the mortgage, the disadvantage of this is that your interest rate may go so high that you may not be able to pay up whereby your loan will go through a process known as foreclosure where your loaned house will be taken back from you.
Do you have a mortgage? Do you think mortgage is a good way to have a home?
Types of mortgages
There are basically two types of mortgages, they are as follows
1. Fixed rate mortgage
This is the kind of mortgage whose loan repayment interest is fixed, let's say there is a 20% interest on the loan, one will need to pay that fixed interest till the loan payment is finished. They normally lasts for 10, 15 or 20years repayment plan.
2. Adjustable mortgage rate
This type of mortgage utilities a changeable interest rate on the mortgage, the disadvantage of this is that your interest rate may go so high that you may not be able to pay up whereby your loan will go through a process known as foreclosure where your loaned house will be taken back from you.
Do you have a mortgage? Do you think mortgage is a good way to have a home?