A mortgage is an agreement between you and a lending institution that says you will repay your loan at a certain interest rate over a certain number of years. The mortgage will be secured against loss with your new home, so if you default, the lending institution will take ownderhip of the home.
Home mortgages are generally available at a lower interest rate than credit cards or personal loans because of the longer period of time over which you will pay the off the loan and the interest. Your loan payments will usually be monthly, and the repayment terms could be anywhere from 10 to 30 years.
At, there are two major types of home mortgages, with a third type gaining popularity over the past couple of years.
The first type of home mortgage is a fixed-rate home loan where you borrow money for a fixed rate of interest over a specified number of years. This is one of the most popular types of home mortgages because many borrowers like the security of knowing that their monthly payments will not rise at the whims of the economy or the central bank should interest rates fluctuate.