Do you really think you know what a mortgage is? Do you know that there is more than one way to return the loan money? If this question has already left you in doubt, you can still learn a lot about how a mortgage works. Finding out will help you make better decisions when you hire a mortgage or manage what you have.
The first thing is to know that a mortgage is a home equity loan. In other words, it is a loan in which the house acts as collateral so that if the payments defaulted, the entity can keep the house to pay off the debt.
Every mortgage is made up of four key elements: amount, interest rate, loan term and repayment method (how the money is returned). And the monthly fee? However much it is set in most when hiring a mortgage, it is only the result of what happens with the other three variables of the loan. If you modify any of the other four ingredients, the fee will also change.