Resource: The Definitive Guide to Mortgages

A few weeks ago, I wrote about tips for mortgage shopping, but since then, InvestmentZen has published a monster guide to mortgages that’s worth a read if home shopping is in your future. Here’s a few words from Tiffany of InvestmentZen:

Purchasing a home is a major financial decision. For a lot of us, it may be the biggest single financial decision we make during our lifetime. Given its importance – it’s surprising how many of us actually have a very poor understanding of the finances behind a real estate transaction, especially when it comes to getting a mortgage.

Securing a mortgage can be a complicated, as there are many different parties involved in the process along with industry jargon, but it is essential to understand because it can mean saving thousands of dollars over time. Failure to understand your mortgage and its potential effect on your finances could not only result in lost money that could be saved for retirement or other financial goals, but as many discovered during the great recession – it could mean losing your house.

The terms of a mortgage are very important for a home-buyer to understand. The difference in terms could mean thousands of dollars paid over the lifetime of the loan, which usually run for 30 years. There are many different types of loans, each of which have varying rates. These different types are also essential to understand in order to ensure that a homebuyer receives the best rate possible.

While it can be confusing, here is an easy-to-understand guide that walks through the steps of getting a mortgage in four chapters. The chapters cover a basic understanding of mortgages, the types of loans available, what factors affect a mortgage rate, and the application process. Though reading about mortgages isn’t exactly exciting, if you’re thinking of buying a house, this guide does a great job of breaking down everything you need to think about when applying for a mortgage.


  1. Beth @ The Money Pixie

    You’re right. People really do need to take the time to understand mortgages in general and their mortgage specifically before they sign on the dotted line.

    Their home is most likely the largest purchase they will ever make, and they will be living with it for years to come, so a little advanced research is always a good idea.

    1. You fully realize your commitment to a mortgage on the day you sign the papers, the endless papers. That’s a good reason to make sure you’ve read and truly understand all the details. Beth, you’re absolutely right about doing the research in advance, because once you’ve signed, you’re 100% committed. Thanks for your comments.

  2. Struan Baird

    Securing a mortgage is hard work and there is a lot of confusing terminology. The problem is people rely on mortgage advisers or one mortgage advisor, instead of really gaining understanding themselves.

  3. It’s sad that folks spend less time picking a mortgage or shopping around than they might shop for something simple on Amazon, reading reviews and asking friends. We’re much too closed off from each other about money in the States and it is to our detriment. Sharing a little more would help us all make better financial choices.

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