Here’s Everything First-Time Home Buyers Should Know About Mortgages
First things first: What is a mortgage?
Good question! The short answer is: a loan. The slightly longer answer is: a loan in which a piece of property or real estate is used as collateral. A mortgage loan makes it so a home buyer doesn’t have to pay the entire value of a piece of real estate at once. Instead, they pay a percentage of that value up front and a bank or mortgage lender covers the rest. The home buyer then pays back the loan, plus interest, until they own the property outright. If they stop buying back the loan, the lender can foreclose on (aka take ownership of) the home.