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| What does a mortgage get you? |
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A mortgage gives you (by many measures) a large amount of money for you to buy a fixed asset whose value can appreciate as time goes by. Normally, you'll be getting a mortgage to purchase a home - and then you'll be paying the bank that lent you the money in monthly installments - much like paying the rent.
Your mortgage payments will have a set percentage of interest that will be paid on top of your original loan amount. This interest rate depends on market conditions at the time you sign the mortgage contract.
The difference is at the end of your payments - say, in twenty-five years - you'll have a piece of real estate in your name. If you want to, you'll then have something of value to shop around with, like getting a better roof over your head, or you can cash it in and invest in a major investment for your golden years. |
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