Mortgage Loan

A mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest.

Mortgage loans are used to buy a home or to borrow money against the value of a home you already own.

Seven things to look for in a mortgage

The size of the loan
The interest rate and any associated points
The closing costs of the loan, including the lender’s fees
The Annual Percentage Rate (APR)
The type of interest rate and whether it can change (is it fixed or adjustable?)
The loan term, or how long you have to repay the loan
Whether the loan has other risky features, such as a pre-payment penalty, a balloon clause, an interest-only feature, or negative amortization