Understanding Mortgages

What is a mortgage primarily used for?

• Purchasing real estate

• Starting a business

• Buying a car

• Paying off credit card debt

What happens if a borrower defaults on a mortgage loan?

• The interest rate is reduced

• The loan is forgiven

• The borrower gets a refund

• The lender can take possession of the property

Which type of mortgage generally has a consistent interest rate?

• Balloon mortgage

• Fixed-rate mortgage

• Adjustable-rate mortgage

• Interest-only mortgage