Understanding Mortgages: A Comprehensive Overview

What is a Mortgage?
A mortgage is a loan used to purchase a property, where the property itself acts as collateral. Homebuyers typically borrow money from a bank or a financial institution, and in return, they agree to repay the loan over a set period, usually 15 to 30 years. Mortgages come with interest rates that can either be fixed or variable. A fixed-rate mortgage means the interest rate remains the same throughout the term, while a variable-rate mortgage can change over time, impacting the amount you owe.

Types of Mortgages Available
There are several types of mortgages to consider, each catering to different financial situations. The most common types include fixed-rate, adjustable-rate, and government-backed loans, such as FHA and VA loans. Fixed-rate mortgages provide stability with predictable monthly payments, making them ideal for long-term planning. Adjustable-rate mortgages, on the other hand, can offer lower initial rates but come with the risk of increased payments over time. Government-backed loans are often designed for first-time homebuyers or individuals who might not qualify for conventional loans, offering lower down payments and more flexible terms. What happens fixed rate mortgage ends