Moneyadviceblog » Loans » The Ridiculously Comprehensive Guide to Mortgages.

We’ve all heard of the word mortgage at least once in our life, either when we went to the bank or hearing our parents complaining about the monthly interest, they have to pay for their mortgage. But, if you are a Gen Z like me, you most probably don’t even know what a mortgage is or if you even qualify for one. Don’t worry because I was in your shoes once, and I was a mortgage novice too. Continue reading our article and learn more about mortgages because our schooling system sure doesn’t teach us things that would help us further down in life.

What is a mortgage?

This is a simple financial transaction or a promise, if you will, which is ruled by governmental regulations and official documents. It is usually accompanied by a huge amount of debt that you have to pay off. I won’t lie, the process of taking out a mortgage is akin to a challenge in Survivor, but these types of loans usually help us achieve our dreams of buying a home. So, even though the process of taking out a mortgage is burdensome, the rewards overshadow it. However, you should be aware that taking a mortgage is something that you shouldn’t take too lightly, and you should always get the help of a trusted professional who will help you out during this hazardous process.


It is usually a loan that one takes out to buy land or property, and the loan must run for 25 years; this can be longer or shorter depending on the terms and conditions of your lender. The loan is secured against the value of the property or land you are acquiring until you pay it off. If you find yourself in a situation where you can’t pay back the loan, then the lender will repossess your home and sell it to get their money back.

Applying for a mortgage?


Applying for a mortgage is usually a two-step process, and this can be a long-winded journey, but most of us finally get there by hook or by crook. The first stage is usually the preliminary step which involves getting your basic information ready, and this is where you find out what kind of loan you can afford and what best fit your needs. The second step is usually the one that will take more time to complete, as this is where the lender will conduct a thorough check of whether you can afford to repay the loan or not and will require some proof of income from you.

How do they work?


The money you borrowed for the loan is called the capital, and you will be charged interest on it until you pay it back. This also depends on the type of mortgage you take out and depends on whether you want to repay the interest and capital or the interest only.

1. Repayment Mortgages

This is the type of mortgage where you pay interest and part of the overall capital every month, and by the end of the contract, which is usually 25 years, you should be able to pay off the debt completely if you didn’t have any hiccups on your road to getting there.

2. Interest-only mortgages.

As its name suggests, this is where you pay off the interest from the loan you take off and nothing off the amount you borrowed. This type of loan we wouldn’t advise you to take out is becoming increasingly difficult to find because both regulators and lenders are worried about its aftermath. After all, this type of loan usually leaves homeowners with a huge debt that most of them can’t pay off. If you take out this type of loan, you will have to find a way to repay the original capital at the end of your contract term.

Find out what kind of mortgage best fits your need, and getting help to find this can be pretty difficult, and we would advise you to get help for this. For all your mortgage needs and support, contact Sunland Capital Mortgage Corporation. With over 20 years of experience in the mortgage game and located in Florida, they are leading expert loans and will advise you on the best option and lowest rates you can get on these.