Wtf Wednesday: What is a Mortgage?

What is a Mortgage?

A mortgage is a loan that a borrower uses to purchase or maintain a home or other forms of real estate and agrees to pay back over time, typically in a series of regular payments.

Mortgages are also knows as “liens against property” or “claims on property”. If the borrower stops paying the mortgage, the lender can foreclose on the property.

Homebuyers can apply for a mortgage after they have chosen a property to buy or while they are still shopping for one, a process known as pre-approvals.

Mortgages come in a variety of types. The most common types are 30-year and 15-year fixed-rate mortgages. A fixed-rate mortgage, the interest rate stays the same for the entire term of the loan. This is known as a traditional mortgage. Please email me if you have any questions on this topic.