Mortgage
- What is a mortgage?
- A mortgage is an agreement between the lender and yourself.
- A mortgage gives the lender the right to take your property, but only when you fail to repay the money you borrowed.
- You must also pay the interest
- Mortgage loans are used to buy a home
- Or to borrow money against the value of a home you already own
- In simple terms, a mortgage is what you take out when you cannot afford a house. A lender will offer to give you money so you can purchase your property, and you will use this loan to make the purchase. Once the purchase is made you will have to make payments towards your mortgage to pay back the money you borrowed
- Why Do I Need a Mortgage?
- A mortgage is a necessity if you cannot pay the full cost of a property out of pocket
- It makes homeownership more affordable, since purchasing a house is a huge purchase. You can spread your repayments on your home loan over so many years, which makes the amount you pay back every month affordable to you
- If you want to purchase a house, a mortgage is smart if you do not want to put all your savings into a house automatically, since it allows you to spread out payments in order to avoid going broke during this purchase