A home loan can seem complicated at first. but when broken down into this simple explanation, it should make more sense.

• A mortgage is a promise to repay the lender what was borrowed, with interest
• The promise to repay the lender is known as the promissory note
• A mortgage or deed of trust refers to the lender's right to take the property away from the borrower

          The Details of the Loan

• A promissory note contains the basic details of the loan, such as the amount of the loan, the interest rate at which the money is being borrowed, and the terms of repaying the loan
• Also included will be more specific information such as possible penalties that could be incurred during the life of the loan as well as clauses in the loan
• For example, a due on sale clause is a clause in the loan that would give the lender the right to collect the entire unpaid balance of the loan at the time of sale of the property

At Proloan, mortgages of 30 and 15 year lengths are offered. Each mortgage has its advantages and disadvantages. Because of this, buyers must educate themselves on the pros and cons of the different terms so that they can decide which term fits them best.