No. A mortgage is a specific type of loan tied to real estate or personal property. A “loan” is the relationship between the entity lending money (the creditor) and the individual borrowing money (the debtor). Loans are given for many types of situations (such as education and cars), but mortgages are exclusively tied to real estate. In a mortgage, the property is owned by the borrower, with the condition that he or she pays back the money borrowed from the lender over time.

A home equity line of credit (HELOC) is a line of credit tied specifically to your home. It is essentially a line of credit that you can use to make large purchases or to consolidate debt on other loans. HELOC interest rates are usually lower than those of other loans, and the interest you pay on a HELOC is tax-deductible. You can borrow as little or as much as you need with a HELOC, and you can borrow against it if necessary.

Mortgage insurance is a type of insurance that protects lenders or investors in case you default on a loan. Mortgage insurance can be public or private. Mortgage insurance helps you qualify for a lower loan, and it lowers the risk for lenders. Mortgage insurance is usually required if you make less than a 20% down payment on a home.

Generally, you should be able to mortgage a home that costs between two and 2.5 times your gross annual income. For example, if you earn $50,000 a year, you can mortgage a home priced between $100,000 and $150,000. You should also aim to put down at least 20% on a down payment to avoid paying insurance fees.

A government mortgage is one that’s backed and subsidized by the government. Government-backed loans are insured by the Federal Housing Administration (FHA). Government-insured mortgages often make home-ownership possible for individuals who couldn’t otherwise afford their own homes

Yes. Federal loans for low-income citizens are available through the US Department of Housing and Urban Development (HUD). HUD helps prospective homeowners and renters finance their living spaces through several subsidized and low-cost rent programs. Some states also offer mortgages for financially need-based citizens.

No. If you, or the property you’re considering renting or buying, meet specific criteria, you are exempt from a down payment. This includes meeting a certain credit score, your employment history, where you are located, and more.

A finance charge is your total cost of credit. It’s the total interest calculated over the loan’s lifetime plus any mortgage insurance that you might owe. The finance charge is estimated in an adjustable-rate mortgage.

A mortgage principle is the amount of money a person borrows to finance a home. It does not include interest.

Yes. The interest rate is the amount of money you owe, determined on a monthly basis, based on the unpaid portion of your home loan. APR is the interest rate plus additional fees like an origination fee, insurance, and points.

The principal of the loan and interest rates form the bulk of your monthly payments. Mortgage insurance is also included if you have insurance along with your loan. Monthly payments also include property taxes and homeowners insurance if you have an escrow account.

Discount points are portions of a loan that you can pay to a lender to reduce your interest rate.

An escrow account is essentially an automatic monthly payment system designed for managing property taxes. It can include homeowners insurance and other home-ownership fees too.

If you fail to make requisite payments, which is called defaulting on your mortgage, the lender can step in to take over the property. At the least, defaulting can damage your credit score. At the worst, it can cause you to lose your home.

Yes. Even if you’ve filed for bankruptcy in the past, you can request a loan through the Federal Housing Administration (FHA). FHA loans are more flexible and lenient than conventional loans. They’re granted to people with a low or non-existent credit score contingent on a monthly insurance payment.

A second mortgage is a secondary mortgage on a piece of property. A second mortgage allows you to lower your monthly costs for your home, and it’s commonly used to finance home improvement or pay off debt. However, second mortgages often have higher interest rates than primary mortgages. They can have higher closing costs as well.

A mortgage lender is an entity that loans money to purchase real estate. A mortgage lender can be a private company, an organization, or a government institution. Banks, credit unions, and life insurance companies are common examples.

A rate lock is the amount of money owed in a mortgage. The rate lock is set by both the lender and buyer before the mortgage is signed. The interest rate, points, the length of the loan and lock, and the loan program determine the rate lock.

The Truth in Lending Act is a federal law designed to promote transparency in the loan process. It was established in 1968. The Truth in Lending Act requires disclosures about the costs of borrowing and the terms of its use. The act makes consumers aware of their rights and responsibilities as loan holders. There are many things to consider when getting a home loan in Las Vegas. The possibilities are infinite, but knowing your rights, your financial limits, and the different types of loans available make the process much easier. Purchasing your first home is

an exciting milestone, and being an informed citizen makes the process much more enjoyable. When in doubt, consult an expert to answer your mortgage questions.