From Yahoo Finance: 2024-01-18 16:24:00

A mortgage is a loan used to buy a house, secured by the home itself. It allows buyers to pay over time instead of upfront. Understanding mortgages helps make the best housing decisions. Your lender charges interest on the loan balance, which you repay monthly. The amount you can borrow depends on your financial profile and down payment size. Preapproval for a mortgage is common before house hunting. Your interest rate is influenced by credit score, down payment, and borrowing amount. Closing costs are about 3-4% of the home price. Mortgages are typically repaid over 30 years, with monthly payments covering principal and interest.



Read more at Yahoo Finance: What is a mortgage, and how does it work?