What is a Mortgage Loan? It's a loan from the bank or other financial institution that helps the borrower to purchase a home.
Positives
- The interest rates are lower than other types of borrowing.
- Long-term mortgages can give you more time to pay.
- No security risks.
- A stable rate of interest.
- Fewer documentary charges.
Negatives
- You pay back more than what you borrowed.
- The loan amount is larger than with a conventional, fixed-rate mortgage.
- Debt
Why would we use this loan?
It is an example of good debt because interests are low and it can be used to purchase a home.
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