Unless you are one of the few that don’t need financial assistance when making a big purchase, you will likely need a loan.
There are many types of loans. Loans for businesses to buy equipment and loans for businesses to buy new commercial property. There are consumer loans for cars, boats and RVs. There are new construction loans, and there are…
So, why is it called a “mortgage” loan?
The origins of the word mortgage are actually pretty interesting, and a little dark.
According to businessinsider.com, the word mortgage is derived from a word loosely translating to “death pledge”…yikes…
But no, the bank is not asking you for your soul or life when you are buying a house. Rather, the term relates to the length of time the loan needs to be paid off (typically 30 years) and the cost of the home.
A Mortgage Loan is what you will apply for when you want to buy a house.
Mortgage rates are usually much lower than the standard consumer loan rates and you can get a Mortgage Loan in 10, 15, 20, 25, and 30 year terms.
Obviously the term affects your monthly payment amount. The longer the term, the lower your monthly payment will be. However, you will pay more interest overtime with a longer term. Your loan officer will advise you on what’s best for your financial situation.
If you can afford it, buying is always better than renting. You’re putting money back in to your own pocket when you own your home. When you’re ready to start the home buying process, call me, Jill Bell, at 479.799.3023. I’d love to help you out!