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Let's begin with the basics. A mortgage is a legal agreement in which a person borrows money to buy property, like a house or other real estate.
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Mortgage Basics – hbacharlotte.com – Mortgage Basics. A mortgage is a long-term loan that uses real estate as collateral. A mortgage loan is commonly used for buying a home. Mortgage loans are usually fully amortizing, which means that the monthly principal and interest payment will pay off the loan in the number of payments stipulated on the note.
Essentially, if you have invested in a down payment, you may be less likely to default on the loan. Because of that assumption, mortgage lenders, in particular, may offer lower interest rates to.