What Is a Mortgage?

A mortgage is a loan to purchase a home or land. When you begin planning to buy a home, shopping for mortgages is one of the steps you can take to find out how much you can afford. Mortgages are offered by banks or credit unions and the loan is secured (guaranteed) by the property you purchase.

The process can seem overwhelming, but with good planning and the right help, getting a mortgage for your home purchase may be easier than you think. Check out this short video on how mortgages work.

Take Charge of Your Savings
Earn rewards for creating a brighter future
Sign up to save more

Recommended Articles

What is private mortgage insurance?

If you get a conventional loan and make a down payment of less than 20 percent of the home price, you are required to purchase private mortgage insurance (PMI). PMI protects the lender (not you) in case you fail to make your mortgage payments. Banks, savings associations, credit unions, and mortgage companies make conventional loans… Read more

Should I Rent or Buy a Home?

Renting versus owning – how to determine which is right for you Choosing whether to own or rent a home is a big decision. The “right” answer for you will be deeply personal, based on a few key considerations that we will explore below. 1. Examine your personal values A good place to start is… Read more

Buying a house seems unattainable for me. What can I do?

“Thanks you for your blog and articles to educate oneself. I hear a lots about affordable housing, which concerns me because the prices on these houses are still not attainable for people like me. I want to buy a home with the Habitat for Humanity program. Can you give insight on what it takes to… Read more