Most people who buy a
home borrow money to do so. Such a loan is called a mortgage. Mortgage lending
has roots going all the way back to the 1780s, when the first commercial banks
were formed in the U.S., but it wasn't until after World War II that the market
started to function like it does today.
What kind of loan is a mortgage?
A mortgage is a type of loan called a secured loan, which means it is secured by the property it pays to buy. If you default on your Bellevue mortgage, then the mortgage lender can foreclose on your home and sell it to pay off your debt.
Applying for a mortgage
When you want to buy a home, you can do one of two things: You can go to a bank or mortgage company, such as Cherry Creek Mortgage Company, and get pre-approved or pre-qualified for a loan before you start looking, or you can find a property you want to buy first and then apply for a loan after. Approval for a home loan depends on a number of factors, including your income, credit score and down payment. You definitely want to get a quote from Cherry Creek Mortgage Company.
How does a mortgage work?
Mortgages are long-term loans, usually 15 or 30 years. In addition to principal (the amount) you borrowed and interest, your Bellevue mortgage payment includes monthly installments toward property taxes, homeowners insurance and mortgage insurance if you need it. Home loans are amortized, meaning more of your payment goes toward interest costs in the early years of your loan, and more goes toward your principal in later years. The difference between what you owe on the loan and what your home is worth, meaning an estimate of what you could sell it for, is called your equity.
What kind of loan is a mortgage?
A mortgage is a type of loan called a secured loan, which means it is secured by the property it pays to buy. If you default on your Bellevue mortgage, then the mortgage lender can foreclose on your home and sell it to pay off your debt.
Applying for a mortgage
When you want to buy a home, you can do one of two things: You can go to a bank or mortgage company, such as Cherry Creek Mortgage Company, and get pre-approved or pre-qualified for a loan before you start looking, or you can find a property you want to buy first and then apply for a loan after. Approval for a home loan depends on a number of factors, including your income, credit score and down payment. You definitely want to get a quote from Cherry Creek Mortgage Company.
How does a mortgage work?
Mortgages are long-term loans, usually 15 or 30 years. In addition to principal (the amount) you borrowed and interest, your Bellevue mortgage payment includes monthly installments toward property taxes, homeowners insurance and mortgage insurance if you need it. Home loans are amortized, meaning more of your payment goes toward interest costs in the early years of your loan, and more goes toward your principal in later years. The difference between what you owe on the loan and what your home is worth, meaning an estimate of what you could sell it for, is called your equity.
No comments:
Post a Comment