A mortgage is a home loan that a person can borrow from a bank or lender in order to help with the purchase of a home. Lenders offer many types of mortgages and loans -- you have to decide what loan choice is best for you. Some resources that can help you with understanding your mortage include:
Lenders offer several types of mortgages, but the most common are fixed-rate mortgages. These loans feature fixed rates and monthly payments, generally for 15-year and 30-year periods. Adjustable-rate mortgages, or ARMs, are different in that the interest rate and monthly payment move up and down as market interest rates fluctuate. Once you understand the concept of a mortgage and what you need it for, the next step is to determine which type is the right one for you.
The process of applying for a mortgage can seem intimidating at first but if you learn what the step-by-step process entails, you'll feel more confidet about taking on a loan. After figuring out what type of loan you need, you should also calculate your ability to pay it back without straining your finances. There are many useful calculators online to help you determine the loan terms and amount you can handle. Check out Mortgage101: Mortgage Calculators