When you’re completely new to the world of real estate, it can be an intimidating pool to wade into. In order to really get the big picture, you need to understand a little bit about a lot of terms that are bandied about: interest rates, amortization, mortgage insurance, brokers, lenders . . . the list goes on. If you want to climb onto the first rung of the property ladder but aren’t independently wealthy – and maybe even if you are independently wealthy – then your first priority is to understand what a mortgage is. More than likely you’re going to need one.
You’ve undoubtedly heard the word before, but apart from a vague idea of something to do with property and a bank, what exactly is a mortgage? Simply speaking, a mortgage is a legal agreement in which property is used as security for the repayment of a loan. If all of the agreed-upon terms of the mortgage are met, the borrower will own the property outright by the end of the specified period.
Every mortgage has three components: the principal, the interest, and the amortization period. Find out more here: http://bit.ly/2GSCZdb