Real Estate Word of the Day: Mortgage
Posted by Tom Crimmins Realty on
Real Estate Word of the Day: Mortgage
A mortgage is a loan specifically used to purchase real estate. It is a financial agreement between a borrower and a lender (typically a bank or a mortgage company) where the lender provides funds to buy a property, and the borrower agrees to repay the loan over a predetermined period, usually with interest.
Types of Mortgages
There's no one-size-fits-all mortgage. Various types cater to different financial situations and preferences. Here are a few common ones:
- Fixed-Rate Mortgage - With a fixed-rate mortgage, the interest rate remains the same throughout the loan's term, providing stability and predictability in monthly payments.
- Adjustable-Rate Mortgage (ARM) - Unlike a fixed-rate mortgage, an…
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