Chapter 6
Selecting a Mortgage
IN THIS CHAPTER
Exploring the differences between fixed-rate and adjustable-rate mortgages
Understanding hybrid loans, balloon loans, and negative amortization
Selecting the loan that’s best for you
Looking at points, caps, and other mortgage mumbo jumbo
Finding a lender (or finding someone to find a lender for you)
Most of us need to take out a mortgage to buy a home for the simple reason that doing so is the only way we can afford a home that meets our needs. This chapter helps all nonwealthy folks comprehend mortgages and then choose one. (If you are wealthy and have a great deal of money to put into a property, this chapter can also help you decide how much of your loot to put into your home purchase.)
Getting a Grasp on Mortgage Basics
What exactly is a mortgage? A mortgage is nothing more than a loan you obtain to close the gap between the cash you have for a down payment and the purchase price of the home you’re buying. Homes in your area may ...
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