For many, owning a home is a significant life milestone, and mortgages play a pivotal role in making this dream a reality. A mortgage is a financial arrangement that enables individuals to purchase real estate without paying the entire cost upfront. In this article, we’ll explore how mortgages work, the various types available, and essential considerations when shopping for one. A mortgage is essentially a loan provided by a lender (usually a bank or a mortgage company) to help you purchase a home. The home itself serves as collateral for the loan. The borrower agrees to repay the loan amount, plus interest, over a specified period, which is typically 15 to 30 years. The monthly mortgage payment comprises two main components: 1. Principal This is the original loan amount borrowed to buy the home. Over time, as you make payments, the principal decreases. 2. Interest Lenders charge interest as compensation for lending you the money. The interest rate is a percentage of the outstanding loan balance and is a significant factor in determining your monthly payment. There are various types of mortgages, each with its