A mortgage is a loan from a bank or a financial institution that helps the borrower purchase a house. A mortgage is secured by the home itself, so if the borrower defaults on the loan, the bank can sell the home and recoup its losses. Mortgage payments are usually monthly and consist of four components: principal, interest, taxes and insurance. Mortgages are a good method of investment especially if you are an employee with good income who can easily afford to keep up with the monthly payments. Also, to ensure that you profit from the arrangement, you have to be smart. For instance, you may choose to have tenants who will pay rent that can also be used to offset the payment greatly.
TERMS AND CONDITIONS
Before getting a mortgage, the borrower agrees to certain terms and conditions. These specify how long she has to pay the mortgage back, which can span decades, and how much she has to pay each year as well as what she’s required to pay at signing, which is a percentage of the home’s cost called Read More