Basic+definitions+Ashley+Kim+CFC

Mortgage: a loan taken out in order to buy property – they are issued by banks and when you pay them back you pay an interest (extra payment)

Fixed rate mortgage: A mortgage in which the interest which is paid back is constant each year • E.g.: 600 dollars to pay back and 60 dollars interest o 60 dollars and 6 dollars interest each year for 10 years

Adjustable rate mortgages (ARMs): A mortgage in which the amount of interest paid back per year is not constant and is adjusted per according to the lender