The word “mortgage” is used a lot when it comes to buying a home, but do you really know what a mortgage is?
According to the Consumer Finance Protection Bureau (CFBP), a Mortgage is an agreement between you and a lender. You give the lender the right to take your property if you fail to repay the money you borrowed, plus interest. Mortgage Loans are used to purchase a home, or to refinance your existing home by borrowing against the value of the home.
A mortgage is not a Deed of Trust, which is a different document that may be a part of your mortgage closing documents, in states that allow Deeds of Trust.
There are many different types of mortgage loans, including Conventional, FHA, and VA loans.
If you are curious about which type of mortgage loan would be best for you, reach out to us and we will help you find out your options.