Owning a home has been a life goal for many people - a home where your kids will grow and a home full of pleasant memories. Unfortunately most people don't have the cash to buy a home right away, and their only option is to get a mortgage. A home purchase is usually the bigger purchase in one's life, so being familiar with various mortgage terms might be very important for your financial future.
There are several basic mortgage terms you should be familiar with, before even thinking of purchasing a real property and getting a mortgage. These terms include down payment, amortization, mortgage principal, and mortgage term to name a few. People who plan to invest in real estate might be interested in learning more about real estate investment trusts (REIT).
Understanding how different mortgages work is crucial if you want to avoid a foreclosure down the road. There are many different types of mortgages like adjustable rate mortgage also known as ARM (very unpopular with the ongoing financial crisis and the deflation of the housing bubble), fixed-rate mortgage, conventional mortgage, assumable mortgage, HELOC (Home Equity Line of Credit), first mortgage, and second mortgage.
Learn what a mortgage broker is, and how you can use one when shopping for a mortgage. You can also learn about lawyers specializing in real estate transactions. Find out what deed and closing are, and learn more about mortgage insurance.
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