A loan is the redistribution of money between a lender and a borrower. As a borrower, you receive an amount of money from the lender, which you will have to pay back later. This service is provided at a cost, referred to as interest, or annual percentage rate (APR).
Types of Mortgage Loans The Basics
In the past, homebuyers more or less had limited mortgage loan options. These days, there are more options than you can shake a stick at, but heres a primer on the basics.