Different Types of Mortgages
In a mortgage there is an agreement between a lender and a borrower. This agreement include the lender’s taking away the property of the borrower if there is failure to pay the money back. Usually, a house or any costly property is given out in exchange for a loan. The home is the security which is signed for a contract. Any mortgaged item have to be given up to the lender in the event of failure to make loan repayments. The property mortgaged may now be sold by the lender in order to get back the amount that you failed to pay.
There are different types of mortgages that will be discussed below.
One of the common and simplest type of mortgage is the fixed rate mortgage. The payments of the loan will be exactly the same for the whole term. Your debts will be cleared …