What does it mean to take out a mortgage to buy a house?
Can some explain this to me. I'm unsure of the meaning of mortgage. Thanks in advance.
- rtfmLv 78 years agoFavorite Answer
To take out a mortgage means to borrow the money from the bank to pay for the house.
If you don't pay back the loan, the bank can take your house away from you.
- ?Lv 78 years ago
A mortgage is just a really big loan specifically for buying a house which typically takes you around 20 years to pay off (although there are options for anything from a 10 year to a 40 year mortgage)
- glennLv 78 years ago
When you buy a house- most people borrow money to do so. They get a loan with the house being the security for the loan. In other words the loan is tied to the house- and that legal document that ties the loan to the house is a mortgage.
If you had a credit card with a huge limit and used it to pay for the entire house- then you would have a loan -but no mortgage.
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- Genuine GuidanceLv 78 years ago
It means you borrow money from the bank to buy a house.
- 8 years ago
you can go to your bank and ask all the questions you need, and they'll explain it better then probably anyone on here but this might help you :)