A mortgage is a loan obtained to purchase a home or property. The amount of equity borrowers have in their homes is the amount of cash the purchasers are required to pay out of their own funds. The larger the down payment, the less one has to borrow and the more equity one will have in the home. This policy protects the lender against losses from borrowers defaulting in loan re-payment. There are a variety of different options available when it come to mortgages.
Predatory lenders charge fees and interest rates far beyond the risk incurred.
Once an offer has been made and negotiations are concluded and all of the financing has been arranged, a closing date will be set. On that day there are some final arrangements to be made and costs to be covered by the purchaser. Too many people feel that they can't break out of the cycle of paying rent to save enough for a down payment, but for those willing to make the sacrifice, the long term benefits are outstanding.