The majority of people cannot afford to pay the price up-front for their home. As a result, they turn to mortgages to help them buy their home in small chunks (paying back their debt plus interest in monthly installments).
What Is A Mortgage?
Quite simply, a mortgage is a loan to buy a house. The word comes from French, meaning “dead pledge,” to indicate that the debt would need to be repayed, whether the livestock produced or the crops were successful or not. “Mortgage” is a term that many modern Americans are familiar with. In fact, because interest charges have gone down so much over the past 25 years, mortgages have become significantly more attractive and viable for people wanting to buy a home. In fact, interest rates have gone down from 13% on a 30-year fixed mortgage in 1983 to about 7% today.
This Trusty Guide provides comprehensive, clear information on Mortgages:
- Types of loans available
- Potential lenders
- How financing works
- What affects your monthly payments
- What's the right plan for you