What Is A Mortgage?
A mortgage is a loan used to purchase real estate.
The loan is secured by the property itself which means that the property acts as collateral for the loan. The Lender you get your mortgage through will register a lien (a.k.a. charge) on the title of the property. They do this so that if you decide not to make your mortgage payments, they can repossess the property and sell it to recover their money.
Mortgages are made up of many different components which all play a role in the overall cost of the mortgage.
What is the best type of mortgage? The answer is different for everyone.
Below, I'll outline the different components so that you have a better understanding of how a mortgage works.