Loans
Mortgage
A loan used to buy real estate, where the property itself serves as collateral. Mortgages are repaid over a set term, most commonly 30 or 15 years, through monthly payments of principal and interest. The lender holds a lien on the property until the loan is fully repaid. Understanding the different types of mortgages — fixed-rate, adjustable-rate, FHA, VA — is one of the most important steps in the homebuying process.
Why It Matters
Understanding Mortgage is a key part of choosing the right mortgage. The type of loan you select affects your monthly payment, how much interest you pay over the life of the loan, and how much flexibility you have if your financial situation changes.
When comparing loan options, pay attention to how mortgage fits into the bigger picture of your borrowing costs. A knowledgeable loan officer or mortgage broker can help you evaluate whether this option aligns with your financial goals and timeline.