A mortgage is a loan that a person takes out in the process of buying a home. A mortgage loan can have a fixed rate, an adjustable rate, or a combination of the two. A fixed rate mortgage loan means that the rate is the same for the entire term of the mortgage loan. An adjustable rate mortgage means that the rate could change over the life of the loan, causing the payment to change.

Fixed rate mortgage loans typically have terms of 15, 20, and 30 years. Adjustable rate mortgage loans typically have terms of 30 years, but only a part of that term is fixed, say perhaps, 2, 3, or 5 years.

In what situation is a mortgage loan used?

A mortgage loan can be used by anyone buying or refinancing:

• A primary residence
• A second home
• An investment (rental) property, also known as non-owner occupied.

The first step in the mortgage loan process is to determine how long you intend to keep your property. Mortgage loans with initial fixed interest periods (2/1 ARM, 3/1 ARM, etc.) typically carry lower rates than 30 year fixed mortgage loans, giving a lower payment to someone planning to own a property for a shorter period of time.

Use RealEstateABC's ABC Values tool to check your properties' current home values.

Benefits of a mortgage loan

There are many benefits to having a mortgage loan. Having a mortgage loan means you own a home, and can build equity. Equity simply means the difference between the value of a property, and the amount you owe on the mortgage loan.

The interest on a mortgage loan is often tax deductible, saving you money. Having the ability to take out a second mortgage loan on your property gives you access to your equity. As mortgage rates change, you can refinance your mortgage loan to get a better rate.

High Recommended Books

1.

The Loan Officer's Practical Guide to Residential Finance by Thomas A. Morgan (Paperback - Jan 2, 2007) Buy new: $52.25    3 Used & new from $52.24 Excerpt - page 5: "... TOTAL MONTHLY OBLIGATIONS First Mortgage P & I $ Housing Payment (#1) $ Second Mortgage P & I $ Other Mortgages (Rent Income- Mo. Hazard Insurance $ Payments = Negative) $ Mo. Real Estate Taues $ Auto Loans $ Condo/Association Fees $ Other Installment Loans $ Mortgage Insurance( ..."

2.

Jump Start Your Mortgage Career: A Proven Plan For Loan Officers And Mortgage Brokers Who Want To Skyrocket Their Income in 30 Days by Ameen Kamadia (Paperback - Oct 1, 2006) Buy new:$19.79    12 Used & new from $19.39 Eligible for FREE Super Saver Shipping. Excerpt - page 58: "... JUMP START YOUR MORTGAGE CAREER loan officer and not just another salesman. The USP is what ..."

3.

The Complete Idiot's Guide to Success as a Mortgage Broker (Complete Idiot's Guide to) by Daniel S. Kahn and Marian Edelman Borden (Paperback - Jun 6, 2006) Buy new: era ..". na ot tableadjus essesbusin tera nda ro plepeo a ni nationcombi r-va fo usio het creditforms- o.tw rdsca A arc xedfi anslo tera nessbusi gagemort anslo anlo tgamor ansme atth het tera si het mesa orf het ireent rmte fo het $13.57    43 Used & new from $10.77 Excerpt - page 5: "... in that state a loan officer is an "employee of a registered mortgage broker who originates mortgage loans for a fee. Loan officer ..."

4.

Mortgage Encyclopedia: An Authoritative Guide to Mortgage Programs, Practices, Prices and Pitfalls by Jack Guttentag (Paperback - May 7, 2004) Buy new:$14.93    41 Used & new from $10.84 Excerpt - page 36: "... used to determine interest rate adjustments on an adjustable rate mortgage. See Adjustable Rate Mortgage (ARM)IARM Rate Indexes. Conforming Mortgage A loan eligible for purchase by the two major federal agencies that ..." Surprise me! See a random page in this book.

5.

Mortgages 101: Quick Answers to Over 250 Critical Questions About Your Home Loan by David Reed (Paperback - Sep 30, 2004) Buy new:$11.53    49 Used & new from $8.19 Excerpt - page 27: "... difference between collecting the interest payments on a $10,000 auto loan and a $200,000 mortgage. So it behooves the lender to make larger loans in ..."

6.

So You Want to Be a Mortgage Broker by Ameen Kamadia (Paperback - Oct 2004) Buy new:$13.57    17 Used & new from $12.76 gagemort oni si yb a ndyRa anlo nsonJoh atth rback(Pape a - sonper ulJ kesta 91 uto 02)20 ni uyB het 46 new:$13. cesspro sp;&nb fo 73 ingbuy edUs a mp;&a me.ho ewn A omfr gagemort .32$5 anlo anc erptExc veha - a gepa xedfi :5 t Excerpt - page 10: "... SO YOU WANT To BE A MORTGAGE BROKER By combining professional expertise with direct access to hundreds of loan products, a broker provides consumers the most efficient and ..."

7.	Residential Mortgage Loan Origination Made Easy by Abby Kamadia (Paperback - Feb 1, 2007) Buy new: $137.00    2 Used & new from $130.15 Excerpt - page 9: "... aptr Why Be A Mortgage Loan Originator? W by should you consider being a mortgage loan ..." Surprise me! See a random page in this book.

8.	Mortgages For Dummies, 2nd Edition by Eric Tyson and Ray Brown (Paperback - Aug 27, 2004) Buy new:$11.55    50 Used & new from $7.45 Excerpt - page 10: "... Mortgage payments As we discuss in detail in Chapter 4, a mortgage is a loan you take out to finance the purchase of a home. ..."

9.

Basic Mortgage Loan Processor Training by S.K. Kenney (Paperback - Feb 2004) Buy new:$113.39    2 Used & new from $54.99 sonper ulJ kesta 91 uto 02)20 ni uyB het 46 new:$13. cesspro sp;&nb fo 73 ingbuy edUs a mp;&a me.ho ewn A omfr gagemort .32$5 anlo anc erptExc veha - a gepa xedfi :5 tera ..". na ot tableadjus essesbusin tera nda ro plepeo a ni nationcombi r-va fo usio het creditforms- o.tw rdsca A arc xedfi anslo tera nessbusi gagemort anslo anlo tgamor ansme atth het tera si het mesa orf het ireent rmte fo het Excerpt - page 1: "... Curriculum Overview Mortgage Loan Processor Basic Training Chapter I Industry Overview Benefits of Loan ..."

10.

Private Mortgage Investing: How to Earn 12% or More on Your Savings, Investments, IRA Accounts and Personal Equity--A Complete Resource Guide with 100s ... Secrets From the Experts Who Do It Every Day by Teri B. Clark and Matthew Stewart Tabacchi (Paperback - Jan 30, 2006) Buy new:$19.77    22 Used & new from $12.47 Excerpt - page 45: "... CHAPTER 2 Private Mortgages - Why You Want to Be Involved Mortgage Broker Case Study - Allstate Mortgage Loans and Investments, Inc. 809 NE 25th Ave. ..."

11.	The Mortgage Kit: Select the Right Loan, Lock in the Lowest Rate, Negotiate the Best Terms (Mortgage Kit) by Thomas C. Steinmetz (Paperback - Nov 1, 2006) Buy new:$14.96    40 Used & new from $10.31 Excerpt - page 13: "... to you. (See Figure 1.2.) Chapter 2, "Qualifying for a Mortgage Loan, ..."

12.

The Loan Officer's Handbook for Success: For Residential Mortgage Loans by Steven W. Driscoll (Paperback - Mar 18, 2004) Buy new:$79.20    41 Used & new from $37.70 uto 02)20 ni uyB het 46 new:$13. cesspro sp;&nb fo 73 ingbuy edUs a mp;&a me.ho ewn A omfr gagemort .32$5 anlo anc erptExc veha - a gepa xedfi :5 tera ..". na ot tableadjus essesbusin tera nda ro plepeo a ni nationcombi r-va fo usio het creditforms- o.tw rdsca A arc xedfi anslo tera nessbusi gagemort anslo anlo tgamor ansme atth het tera si het mesa orf het ireent rmte fo het

13.	All About Mortgages: Insider Tips to Finance Your Home by Julie Garton-Good (Paperback - April 1, 2004) Buy new:$15.56    26 Used & new from $5.57 Excerpt - page 1: "... to help the consumer understand and more aptly navigate the mortgage loan process. ..."

14.	Who Says You Can't Buy a Home! by David Reed (Paperback - May 30, 2006) Buy new:$14.00    65 Used & new from $3.79 Excerpt - page 3: "... CHAPTER 1 Where to Find Mortgages Mortgage loans come from four basic sources: retail banks, savings and loan ..."

15.

How to Save Thousands of Dollars on Your Home Mortgage, 2nd Edition by Randy Johnson (Paperback - Jul 19, 2002) Buy new:$13.46    37 Used & new from $5.32 Excerpt - page 5: "... to businesses and people in var- ious forms-credit cards, car loans, business loans, mortgage loans, equity lines, and so forth. Essentially, they run a ..."