Mortgage
A mortgage is an agreement by which a loan is granted for the purchase of a property and the property itself is pledged as security. Mortgage loan can be paid in installments over a give period of time. Getting a mortgage is considered as a serious financial obligation to be made.
Here are the two types of mortgage:
1. Adjustable-Rate Mortgages
This type of mortgage is very popular because it usually start with a lower interest rate and a lower monthly payment, but take note that the interest rate is changeable during the life of the loan.
2. Fixed-Rate Mortgages
It is the most common mortgage for first time homebuyers. They are unchangeable and stable. Monthly mortgage payment remains the same for the entire term of the loan.