As the real estate price are booming up for the last five years, homes are selling for 33% higher than the last few years, this has made more difficult for the home buyers to purchase the homes by making huge payment as lump sum. Over these years many mortgage options are available for the homebuyers that reduces the burden of purchasing the home.
Forward mortgages are also known as traditional mortgage that are used to buy a home, so this also creates debt against your home you purchase, and this affects how much ownership value or equity you have in the home you have purchased.
Debt is nothing but the amount you borrowed from the lender and this includes cash advances that is made to you or made for your benefit along with the interest. Home equity means it is the actual value of your house less of the debts you owe it, incase if your home value is $150,000 and you owe mortgage of $30,000 then the home equity would be $120,000 only that is Rising equity and falling debt.
When you have purchased the home by making a small down payment and mortgage the rest of the amount you require to purchase it, then you must be repaying the forward mortgage loan every...
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