What is a Mortgage?
The mortgage, as many newcomers to the real estate market may not know, is a long-term loan that allows you to purchase a property. Loans for this type of transaction are typically made by banks and other financial institutions. It is common for these mortgages to be approved as long as you meet certain criteria such as having a steady job and enough cash reserves to pay the downpayment and associated costs. Your credit score will also be examined to see if you meet the lender's standards.
A mortgage is a loan that allows people to purchase a house or property. In the United States, mortgages are governed by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), two government-sponsored enterprises chartered by the U.S. Congress in 1970.
Many people don't know how much they should be paying in mortgage monthly payments. You can calculate how much you can afford to pay by using the mortgage payment calculator which will help you reach your goal of homeownership. The calculator is easy to use and all that is required are your current income, assets, existing debt, housing expenses (including insurance), and the amount you wish to borrow for your home purchase.
The monthly mortgage payment is one of the most basic calculations in finance. A mortgage covers the cost of purchasing or building a home by borrowing money at an interest rate for a set period of time. A mortgage is typically amortized between 15 years to 30 years, with monthly payments covering interest and repayment on the principal balance.