A mortgage is a loan taken out with a bank or building society to buy a house or other property. The US mortgage and loan market is one of the most innovative and competitive in the world.
There are two main types of mortgage: repayment mortgage, where your regular repayment goes towards the amount you borrowed (the capital) and the interest and interest only mortgage, where your regular repayment goes towards the interest only. At the end of the mortgage you repay the capital in a lump sum.
The cost of the mortgage depends on the interest rate. There are lots of different types of interest rates such as fixed rate or variable rate.
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