Residential Mortgages
A residential mortgage is a loan specifically used to purchase a home. Borrowers typically make a down payment and repay the loan over a period of 15 to 30 years. The mortgage is secured by the property itself, meaning if the borrower fails to make payments, the lender can take possession of the home through foreclosure. Mortgages have interest rates that can be fixed (staying the same throughout the term) or variable (changing over time). They are a common way for individuals to afford homes, allowing them to buy now and pay over time.
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A residential mortgage is a loan specifically for buying a home. The borrower receives money from a bank or lender to purchase the property and agrees to pay it back over a set period, usually 15 to 30 years. The home itself serves as collateral, meaning if the borrower fails to repay, the lender can eventually take ownership of the home. Mortgages typically involve monthly payments that include both principal (the loan amount) and interest (the cost of borrowing). Homebuyers may also encounter property taxes and homeowners insurance as part of their overall housing expenses.