Mortgage loans allow people to purchase a house without having enough money to pay for it all upfront. With a mortgage, the borrower can live in their home before they’ve paid the full price for it. But the financial institution that issued the loan owns the house until the mortgage gets fully paid off. Mortgages are secured by the house in question.
- Length: 10, 15, 20 or 30 years
- APRs: 3% to 6%
- Credit score required: 620 for private, 580 for government-insured
- Sources: Private companies, government (FHA, VA, USDA)