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Understanding Mortgages Understanding Mortgages: A Quick Guide for Homebuyers
Posted by Frederick Trudeau on
Understanding Mortgages: A Quick Guide for Homebuyers
Buying a home is one of the biggest financial decisions you’ll ever make, and for most people, that journey starts with a mortgage. But what exactly is a mortgage, and how does it work?
What Is a Mortgage?
A mortgage is simply a loan from a lender—like a bank or credit union—that helps you purchase a property. Instead of paying the full cost upfront, you borrow money and repay it over time, usually in monthly installments.
Key Components of a Mortgage
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Principal: The amount you borrow.
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Interest: The cost of borrowing money, usually expressed as a percentage rate.
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Amortization Period: The total length of time it will take to pay off your mortgage (commonly 25–30…
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