Where the heart is
How a mortgage can help bring you home
Taking on a mortgage and purchasing a home can be significant but rewarding commitments.
Key Takeaways:
- A mortgage is a type of financing that can help borrowers become homeowners.
- A mortgage is often considered a “good debt” because it can facilitate homeownership and may offer tax advantages.
- With a fixed-rate mortgage, the borrower pays the same rate of interest over the life of the loan. With an adjustable-rate mortgage, the interest rate will rise or fall with the market after an introductory fixed period.
- Lenders may consider down payment size, credit score, income, expenses and other factors when determining whether or not an application meets guidelines.
- The advantages of a mortgage can include ownership, investment opportunity, potential liquidity and tax advantages. There can also be risks, particularly if you are unable to repay the mortgage as agreed.