My First Property

All You Need To Know About Mortgages

Knowing about mortgages can be quite confusing, it may be daunting not knowing about them, but this guide will help you learn more about mortgages so you don't have to worry.

A mortgage is a legal contract between a lender and a borrower.

To get a mortgage you will have to complete an application to qualify you with a lender.

Factors like debt, income, credit history and value of the property will come into account.

It is best to get pre-approved before beginning a home search.

Lenders will pre-approve home buyers with a solid financial history.

A standard down payment amount for a mortgage is about 20 percent of the home purchase price.

Some lenders will offer no down payment options.

Mortgage interest rates constantly change and fluctuate.

Mortgages are usually repaid in 20, 25 or 30 years.

Payments for mortgages are due each month.

Each time you make a payment the balance will decrease.

A fixed rate mortgage do not have the interest rates change.

An adjustable rate mortgage begins with a fixed rate for 6months to ten years and then after the interest rates can change.

Getting a mortgage is one of the main ways to get a home without paying the full amount, you will most likely have to get a mortgage in your lifetime, Make sure you look around for good deals on mortgages, and check different places. You can look around on line for deals and offers and some more information. Get advice before you go ahead with anything.

More first-time house buying articles:

  1. Deciding on Your Property 'Must Haves'
  2. Will I Be Able To Get a Mortgage?
  3. Double-Checks Before Exchanging Contracts
  4. Decorating Your First Home: 10 Budget-Friendly Tips
  5. How Do Mortgage Holidays Work?

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