. But for most would-be homebuyers, up-to-the-minute financial information might not feel as important as the bigger-picture questions: How do mortgages work? What kind of mortgage is right for me? Will I ever be able to afford one?
Read on for the answers to all the big-picture questions you have about mortgages, but were maybe afraid to ask.A mortgage is a type of loan used to purchase a home or other type of real estate, as an alternative for paying the entire purchase price up front. While your payment is likely to be the same every month, early payments you make will be much more heavily weighted toward interest, while later payments will chisel down the principal.
The rate you pay on a mortgage depends on factors such as your credit score, employment history and level of debt as it compares to your income. And even then, different lenders may offer you different deals.