Before you get a mortgage loan you need to know the basics of what it actually is, that’s why we put together this crash course in the anatomy of a mortgage loan. We’re going to cover the basic definitions of some common terms you’ll run into, the actual break down of what you pay each month for your mortgage and then go into some of the most popular types of mortgages for homebuyers.
Terms and DefinitionsWhen you are trying to secure a mortgage loan from a lender these are the mortgage components you’ll need to know about:
- Interest rates – An interest rate is the percentage of your loan amount the lender charges you to borrow the money to buy your house. Interest rates are based on: market conditions, your credit score, the size of your down