This is part two of the Buying a House series. If you haven’t read the first part, “How Much House Can I Afford?” you click over and read that one first. It’s important to know how much house you can afford before worrying about mortgages.
What is a mortgage?
Most people these days cannot afford to pay cash for their home, and I’m guessing that if you’re reading this, you are not completely established yet and/or this is your first home purchase. Luckily, for those of us that do not have the cash to purchase a home, we have the option of getting a mortgage to cover the (usually large) portion that we can’t. A mortgage is a loan that either a bank or mortgage lender gives you to help finance the purchase of a house.1
A mortgage is made up of four things: principal, interest, taxes, and…
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