A mortgage is a legal agreement in which a borrower pledges an asset, typically real estate, as collateral to secure a loan from a lender, usually a financial institution. In this arrangement, the borrower receives funds to purchase the property, while the lender retains a lien on the property until the loan is repaid in full. If the borrower defaults on the loan, the lender has the right to foreclose on the property, meaning they can take possession and sell it to recoup the outstanding debt. Mortgages generally involve a series of monthly payments that include both principal and interest, and they are often structured over a fixed term, such as 15 or 30 years. The terms of the mortgage, including the interest rate and repayment schedule, vary based on factors such as the borrower’s creditworthiness, the amount of the down payment, and prevailing market conditions. Mortgages are a common way for individuals and businesses to finance the purchase of real estate, making them a fundamental component of the housing market and broader economy.
The Future of Mortgage Rates: Predictions and Insights As 2025 approaches, experts are closely monitoring the trends in mortgage rates. Notably, a prominent economist has indicated that the decrease in…