What is a mortgage ?

A mortgage is an agreement between you and the lender that gives the lender the right to take your property if you do not pay the money you have borrowed plus the interest. Mortgage loans are used to buy a home or to borrow money on the value of a home you already own.
Tip: Seven Things to Look for in a Mortgage:

The loan amount
The interest rate and the associated points
Borrowing costs, including commissions from the lender
The effective annual rate (APR)
The type of interest rate and whether it can change (is it fixed or adjustable?)
The term of the loan, or the time it takes to repay the loan
If the loan has other risk characteristics, such as a prepayment penalty, final global payment clause, interest-only or negative amortization
Tip: Focus on a mortgage that you can afford, taking into account your other priorities, not the amount of money for which you can qualify. Lenders will tell you how much you can borrow, that is, how much you are willing to lend. Several online calculators will compare your income and debts and come up with similar answers. But the amount you can borrow is very different from the amount you can pay without expanding your budget by weakening other important issues. Lenders do not take into account all your family and economic circumstances. To know how much you can afford, you'll need to look closely at family income, expenses, and savings priorities to see what fits your budget.

Tip: Do not forget other costs when proposing the ideal payment. Costs such as homeowners insurance, property taxes and private mortgage insurance are usually added to your monthly mortgage payment, so do not forget to include these costs in the calculation of the amount you can afford. You can get the estimates with your local tax assessor, the insurance agent and the lender. Knowing how much you can afford comfortably each month will also help you calculate a reasonable price range for your new home.