|
Stop Over-Paying
Your Mortgage! |
|
Compare mortgage rates from 5 local and nationally-recognized
mortgage lenders
|
| |
|
| |
|
| |
|
|
 |
| |
| |
| |
| Your first mortgage?? |
Throughout your home owning experience, you may run into unexpected
events that cause you to
use your options of increasing and decreasing both your debt and
home equity in your property.
Mortgages are really
just that, a change in the amount of money you owe (debt) and the
amount
of ownership in your property (home equity).
The first time you buy a home, it is very common to put down
a down payment towards the home price,
and then borrow money from a lender to cover the rest of the price.
You then make payments with either
a fixed or adjustable rate mortgage, based on a predetermined
interest rate and terms.
This transaction with you and the lender is called a mortgage.
And if it is the only mortgage on a property,
it is called a first mortgage.
In the case of this first mortgage, you most likely
have a larger amount of debt than the amount of home
equity, unless of course you borrow less than you put down, then
you would have a greater amount of
home equity than debt. Every time you make a payment to the lender,
your debt decreases and the
property’s home equity increases. This occurs until the
life of the loan has been fulfilled, and the
mortgage is paid in full. At this point, the property
is free and clear, and you own the property out right.
Anytime during the life of the first mortgage, home
owners may choose to borrow against the home
equity built in the home and take out a second mortgage. A second
mortgage is a mortgage
on a property which has already been pledged as collateral for
an earlier mortgage.
Being a homeowner can be rewarding in many ways, and being able
to utilize the money
in your home is one of them. Always research terms and conditions
of any mortgage. |
|
|
| |
