Before buying anything that requires you to get a loan you should be sure to have some basic knowledge about mortgage loans. Whether youre purchasing a house, a car or anything else, having some solid basic knowledge about loans wont hurt and will probably save you time, money and troubles.

Borrowing money has costs and you know its not a cheap thing, but you dont have any other options. Having a clear idea of how much your loan is going to cost may be not so intuitive because there are fees, charges and the interest rates to consider.

Youll have to pay back more than what you got from the lender, thats the central concept of the entire mortgage industry. Youll be paying them back the amount you got plus interest rates and additional fees and charges.

Between a fixed rate mortgage or an adjustable rate mortgage loan there can be a huge difference in the long run in case interest rates are going to be adjusted a lot (and with such unstable markets you can bet on it).

Strictly connected to this aspect comes the monthly premium you can afford to pay to the mortgage company.

Your credit history is very important as well and will determine if youre going to get the loan and how high or low your interest rate will be. No company will lend you money without previously checking your credit score.

The higher your credit score is (this means your credit history is good) the lower your interest rate will be.