Concetti Chiave
- A mortgage is a loan secured by collateral, primarily used for purchasing a house, and repaid with interest over time.
- Most homeowners, especially those not of retirement age, typically have a mortgage on their homes.
- Securing a low interest rate is crucial as mortgages are long-term commitments.
- Obtaining a mortgage involves applying and receiving approval from a lender, also known as getting or taking out a mortgage.
- Opting for a shorter mortgage term, like 15 years, results in higher payments but quicker debt payoff and interest savings.
Mortgage
A mortgage is a loan made to a person on the basis of collateral. It is usually used to buy a house. A mortgage loan will be repaid with interest over a specified number of payments.Ex: Though it would be nice to pay with cash, most homeowners under retirement age have a mortgage on their homes.
Ex: As most people will be making payments on a mortgage for many years to come, it is important and really convinient to seek out an especially low interest rate.
Verbs can be combined with the word mortgage to help explain the process of paying for an item over time. If you want to make payments over a specified period for a house, for example, you will need to obtain a mortgage. To obtain a mortgage means to apply and get approval from a lender. Synonyms for this expression are get a mortgage or take out a mortgage.
Ex: I would like to give you a final answer on whether or not I will buy your home today, but not right now; you will have to wait because it will take at least 5 more days to find out if I can obtain a mortgage.
Ex: If you are able to take out a 15 year mortgage instead of a 30 year one, your payments will be higher, but you will pay off the debt much more quickly, save on interest, and free up your capital for other expenditures after only 15 years. It is up to you now, make your choice.
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