Mortgage

A mortgage is a long-term loan that is secured be real estate. The house and the land it sits on serve as collateral for the loan. A bank will lend money to an individual who meets specific criteria that allow him or her to borrow the necessary fund to purchase a home while he or she promises to pay back the money over a fixed period of time and at a predetermined cost. The bank is in turn guaranteed beyond your promise by having ownership rights until they are paid back all the money that they are owed. There are many types of mortgage loans available for individuals who have made the decision to become a homeowner.