Video Where the heart is

How a mortgage can help bring you home

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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.

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