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Friday, November 27, 2020

Mortgage Loans - Business Studies

What is a mortgage?: 

I mortgage is a loan that you would usually take out for buying property or land. 

Positives of a mortgage:

  • The interest rates are lower than other types of borrowing.
  • Long-term mortgages can give you more time to pay.
  • No security risk.
  • A stable rate of interest.
  • Less documentary charge.
Negatives of a mortgage:
  • You pay more than what you borrowed.
  • The loan amount is larger than with a conventional, fixed-rate mortgage.
  • Debt
Why would you use this loan?:

It is a good example of good debt because it comes with low interest.
We can use it to be able to buy a house. 

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