A mortgage is the amount you would borrower from a mortgage lender to purchase a house minus the down payment you are required to have.
Your mortgage loan program you are approved for would determine your down payment. Your down payment could be zero down if you are or were in the United States military or retired. 3.5% if you are approved for a FHA mortgage loan. 5%-20% if you are approved for a conventional mortgage loan. Your mortgage loan officer would be more specific as to your down payment once you have applied and been approved for a mortgage loan.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
Yes, you will still need to borrow money from the bank to buy a house unless you have the full purchase price in cash. A mortgage is the term used for money borrowed to purchase real estate. The money from the mortgage is used towards the purchase price of a house.
A down payment is the sum needed to secure a loan for a property.
Unless the seller is self funding the property (and that is less than .1% of purchases) you need to borrow enough to pay the rest of the purchase price of the house less down payment and plus fees and closing costs.
A standard mortgage is used to buy a house.
The money you borrowed goes to the seller.
How would you pay for it without a mortgage?
I'm not buying a house or anything but I just want to know if I wanted to buy a house and had enough money for a down payment will I still need to borrow from the bank? Also is someone does get a mortage what do they use the money for ?
