Loans, particularly mortgage loans, are a fundamental aspect of the housing market in the United States, enabling millions of Americans to achieve their dreams of homeownership. A mortgage is a loan secured by real estate, which allows borrowers to finance the purchase of a home by paying a portion of the home’s value upfront (the down payment) and repaying the rest of the amount over a specific term.
With various mortgage loan options available to cater to the diverse needs of borrowers, understanding the different types of loans and their features can help potential homebuyers make informed decisions that align with their financial goals and homeownership aspirations.