Everybody has his own Dream home. When we talk about houses,One important factor of having a house is money!
If we do not have enough money, how can we have a house?
Mortgage is a type of loans that is assured with real estate or property. for example, when we want to buy a house that we can not pay as full amount of house cost, we have to use the real estate or the property as collateral to guarantee from borrowing the bank’s money.
Loan is a relationship between a money Lender (Creditor) and a money Borrower (Debtor). The borrower don’t just return the money at the amount of money initially borrowed (Principle) but the borrower also has to return the additional fee (interests).
and the terms that are related to mortgage loans;
ARM (Adjustable Rate Mortgage) = The interest rate of home loan that can be changed periodically based on a standard financial index. (if you want to know more how different between ARM and fixed rates, click here)
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