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Personal Finance Terms 101: Mortgage

Watch more Personal Finance Terms 101 videos: Subscribe to Howcast's YouTube Channel - Learn about mortgages in this personal finance terms video tutorial. Howcast uploads the highest quality how-to videos daily! Be sure to check out our playlists for guides that interest you: Subscribe to Howcast's other YouTube Channels: Howcast Health Channel - Howcast Video Games Channel - Howcast Tech Channel - Howcast Food Channel - Howcast Arts & Recreation Channel - Howcast Sports & Fitness Channel - Howcast Personal Care & Style Channel - Howcast empowers people with engaging, useful how-to information wherever, whenever they need to know how. Emphasizing high-quality instructional videos, Howcast brings you experts who provide accurate information in easy-to-follow tutorials on everything from makeup, hairstyling, nail art design, and soccer to parkour, skateboarding, dancing, kissing, and much, much more. A mortgage is a form of secured debt. Where a lender is loaning you money to buy a house or an apartment, some type of property. And what's really interesting about a mortgage, is that in the event that you don't make a payment or you fall behind on your payments, because it's a secured debt, that lender has the right to foreclose on the property. And try and cut their losses. There are a lot of different types of mortgages out there from interest only mortgages, to fixed mortgages, to mortgages of different terms, adjustable rate mortgages. So clearly it can be confusing. But what's really important when you're borrowing a mortgage, is to try and get a mortgage that's right for your situation. They all work differently and they have different terms, and so it's really important that you understand all the nuances of the mortgage that you're getting to make sure it's appropriate for your situation. Now, when you're getting a mortgage, often times, your mortgage payment will be made up of three things. There's the actual loan, the principle and interest associated with the loan. But often times your real estate taxes and your home owner's insurance are also wrapped into your mortgage payment. And this is just a way of making your mortgage payment more convenient to you so that it's all in one monthly payment that you're following. So make sure. Take these steps. Get a mortgage that's right for your situation, make sure you understand how your mortgage works, and sometimes look for opportunities where you may be able to refinance or replace your existing mortgage with a new mortgage that might have better terms for your situation.
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