Understanding Mortgages



A mortgage has three parts: a down payment, monthly payments and fees.
- The monthly payment is the amount needed to pay off the mortgage over the length of the loan and includes a payment on the principal of the loan as well as interest. There are often other fees included in the monthly bill.
- The fees are various costs you have to pay up front to get the loan.
- The down payment is the up-front amount you pay to secure a mortgage. The larger your down payment, the better your financing deal will be.
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