What is a Mortgage?
A mortgage is a loan that involves the use of real estate as collateral. It is usually a loan given by a mortgage lender or bank to help finance the buying of a home in exchange for the cash obtained by the individual to purchase the property. The lender gets the promise and assurance of the individual to pay back the amount borrowed within an agreed time. The property bought acts as the collateral in exchange for the cash borrowed to pay the mortgage. In other words, although the borrower possesses the property, it is the lender that has the ownership right of the property until the borrowed sum is paid in full.
Buying a home
Buying a home is easily one of the smartest financial decisions anyone can make. Firstly, acquiring a home under your name is an investment, as the value of a home usually appreciates. It is considered a physical asset and should you choose to sell, you can attract substantial returns. Another way to look at it is to see the living benefits that having your own space affords you. Not only do you have stability and a sustainable future for you, and your family, it also attracts social and tax benefits as well.