This mortgage calculator calculates and tabulates your monthly payment, interest, and balance.
Mortgage: An Introduction
A mortgage is a loan, typically given by a bank or other financial institution, to buy real property. As the homeowner pays back the money they owe on their home, they are actually paying off their mortgage. When the mortgage is paid in full, the borrower owns the property outright. Mortgages literally means “dead pledges”. If the owner of the mortgage dies, then it can be passed on to someone else.
Mortgage rates are a key factor in determining the amount of money a family will need to purchase a house. A mortgage can also be seen as the sum of money that a homeowner borrows from a lender to make payments on their home, and typically has an interest rate attached to it. A mortgage may be for residential property or commercial property, and can be either short-term or long-term.
The homeownership rate in the U.S. is at an all-time low, and it's more difficult than ever to buy a home. One of the main reasons for this trend is the rising cost of housing. The Federal Housing Administration (FHA) reports that mortgage rates are expected to rise by an average of 3% over the next year.
What is the difference between a mortgage and a home loan?
The difference between a mortgage and a home loan can be found in the type of payment made, the length of the agreement, and how it is paid back. For instance, a mortgage is for an agreed-upon amount that's paid monthly with interest accumulating. A home loan generally has a shorter term and often includes principal reduction as well as interest. Since mortgages are backed by property value, they can be seen as more secure than home loans.