A mortgage is a type of loan specifically used to purchase real estate, where the property itself serves as collateral for the debt. In a mortgage agreement, the borrower receives funds from a lender to buy a home or other property, and in return, agrees to repay the loan amount, typically with interest, over a specified period, usually 15 to 30 years.
Mortgages come in various forms, including fixed-rate mortgages, where the interest rate remains constant throughout the loan term, and adjustable-rate mortgages, where the interest rate may fluctuate based on market conditions. Mortgages often involve a down payment, which is a percentage of the property’s purchase price paid upfront by the buyer.
In the event that the borrower fails to make the required payments, the lender has the right to foreclose on the property, meaning they can take possession of it to recover the outstanding loan amount. Mortgages are a fundamental component of the real estate market, enabling individuals and families to acquire homes while spreading the cost over many years.
January marks a turning point for the Euribor, ending its nine-month decline, expected to rise to 2.52%. Homeowners won't see an increase in monthly payments despite the Euribor's rise, especially…