Taking on a mortgage and purchasing a home can be significant but rewarding commitments.
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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