Rochester Real Estate Information: Mortgages
About Mortgages
Shopping for the right loan is just as important as choosing the right
house. Your challenge is to select the loan terms that are most favorable
to your situation. In selecting the loan that's right for you, you'll
need to understand:
- Basic components of a mortgage loan
- Fixed-rate mortgages;
- Adjustable-rate mortgages;
- Government loans and programs;
- Balloon loans
- Basic Components of a Mortgage Loan
A mortgage requires you to pledge your home as the lender's security
for repayment of your loan. The lender agrees to hold the title or deed
to your property (or in some states, to hold a lien on your title or
deed) until you have paid back your loan plus interest.