Are you totally in the dark about the home-buying process? Then don’t hesitate to ask or research the right questions. It is time to swallow your pride and explore the basics.
So, what is a mortgage?
Since most of us don’t have enough in our coffers to simply cut a check to a seller for the full price of a home, we need funds, through mortgages, to help actualize our goals. In the simplest terms, a mortgage is a type of installment loan you take out to bridge the gap between the money you have and the money you actually need to buy the home.
The typical mortgage covers 80 percent of a home’s purchase price and is repaid in monthly installments that combine interest (what the lender charges for using the money lent to you) and…