Features

• In today's market, a mortgage loan can be obtained through a bank or mortgage company. A potential homeowner is granted the mortgage loan based on credit approval and income requirements. The value of the home purchased is used as security for the lender. If the homeowners fail to pay back the mortgage loan, the bank can sell the home to refurbish their loss.
  
  

Types

• Home mortgages are available to suit many situations. A fixed-rate mortgage or an adjustable-rate mortgage may be suggested by the mortgage lender. The interest rate will not change over the course of the loan with a fixed-rate mortgage, whereas the rate fluctuates with an adjustable-rate mortgage. Additionally, special mortgages, called VA loans, are offered to veterans.
  
  

Time Frame

• The repayment period for a home mortgage loan can vary. Generally, 15-year and 30-year mortgages are used. However, 20 and 25-year mortgages are also common. Some mortgage lenders allow for early repayment, while others do not.