Are you and your finances ready to take on the responsibility of a home loan? The below article discusses how big a responsibility a home loan is, and whether you have the finances and credit to back it up?

The home mortgage market is an industry that has been in existence for about 2,000 years and was born of the medieval practice of a landowner selling a parcel of unused land to a prospective landowner who might not have been able to pay the entire cost up front. The lending landowner would enter into such an agreement based on his knowledge of the borrower as a person, his ability to pay, and his ability to make the unused land productive. In short, the mortgage was agreed to based up the borrower's ability to prosper and, thus, minimize risk to the lender. The basic elements of a modern mortgage remains the same as its ancient ancestor. There is a principal sum of money borrowed, a term agreed to by both parties as to when it must be paid back, and a rate of interest charged on the principal over the term of the loan.


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