A mortgage is a loan that is used to purchase a home. The home serves as collateral for the loan, and the lender can take possession of the property if the borrower fails to make the required payments. Mortgages are typically offered by banks, credit unions, and other financial institutions.
When you take out a mortgage, you make regular payments to the lender over an extended period of time, typically 15 to 30 years.These payments include both the capital (the amount you borrowed) and interest (the cost of borrowing the money). As you make payments, you gradually pay down the capital and build equity in your home. As your repayments are made, the loan decreases which in turn increases your LTV (loan to value).
There are many different types of mortgages available, including fixed-rate mortgages, variable-rate mortgages, and tracker mortgages. The type of mortgage you choose will depend on factors such as your financial situation, credit history, and the length of time you plan to stay in your home.
It's important to carefully consider all of your options such as rate and terms before making a decision. A mortgage is a major financial commitment, and it's important to make sure that you understand the terms of your loan and are comfortable with the monthly payments and other costs associated with homeownership.
