If you are planning to buy a house in the near future, you will need to understand just what a home mortgage is. This is very important because it could determine how successful you will be in affording your house. In this video, you will learn everything you need to know about mortgages with a focus on what they are so you can be better prepared in the future.
At its most basic level, a mortgage is a loan from a bank that allows you to buy a house up-front without having all of the money in hand. This works because the house will be used as collateral. Unlike other types of loans, in this case, if you end up being unable to pay back your loan, then the bank will be able to repossess your house with a foreclosure process. That’s why ensuring you can afford to have a mortgage is essential because otherwise, you’ll end up without a house at all. If you give a large down payment, then your monthly mortgage payments will be lower, so keep that in mind.