A Comprehensive Guide to Mortgage Finances




Welcome to our guide to mortgage finances! In plain sight, a mortgage is simply a loan for real estate property: you borrow a whole bunch of money using your *property* as collateral and promise to pay back your loan over time plus interest. In actuality, obtaining a mortgage is much more complicated. Some of our readers’ most common complaints?
  • Choosing the wrong mortgage type;
  • Not enough time to prepare the required documents;
  • Credit history and score problems/errors;
  • Hidden fees and costs; and
  • Loan amount getting out of hand.
That’s why we here at Money Economics have written this guide to help you. We know that choosing the right type of loan and dealing with the fees and paperwork can be overwhelming, so stress no more! Here you’ll find your one-stop guide to what a mortgage is, picking the type that suits your needs, the process of opening the loan, and everything else that you should expect to encounter.

Our goal in this mortgage finances guide is to hit all the highs and lows you can run into - so that you will know where the sweet and gotcha spots are. We always welcome your experiences, questions, and feedback. A great place to voice them is via the Money Economics Forums.

While you may choose to read this entire tutorial, you don’t have to. We have organized it to zero in on the topics that you need the most. Whether you just want to know the basics of what a mortgage is, or you are looking to get a second mortgage, you’ve come to the right place. So, pick your section, and happy reading!


1. The Basics

1. Home Financing Tips
2. Mortgage Basics
3. Qualifying for a Mortgage Loan
4. Steps to the Mortgage Process
5. Tidbits to Know Before You Begin
6. Finding Your Home: Do You Buy, or Do You Rent?

2. Types of First Mortgages

1. An Overview of Mortgage Types
2. Fixed Rate Mortgages
3. Adjustable Rate Mortgages
4. Finding Other Mortgages that Fit Your Needs

3. Mortgage Refinancing

1. Reasons to Refinance
2. Refinance Your Mortgage and Save Big!
3. Examining the Refinancing Fees!
4. Mortgage Refinance Logistics

4. Second Mortgages

1. Using Your Home to Finance Other Purchases
2. Home Equity Loan vs. HELOC, a Comparison

5. Home Equity Loans

1. Home Equity Loans Basics
2. Qualifying for a Home Equity Loan
3. The Home Equity Loan Process
4. Home Equity Loan Fees and Fun

6. Home Equity Lines of Credit

1. Qualifying for a Home Equity Line of Credit
2. Shopping for a Home Equity Line of Credit
3. Legal Protections and Rights For a HELOC
4. Home Equity Line of Credit Fees and Fun

7. Taxes & Law

1. Bankruptcy and Your Home: Homestead Acts
2. Truth in Lending Act
3. Tax benefits & Consequences of Home Ownership
4. Schedule A - Itemizing Your Deductions
5. Mortgages and the Alternative Minimium Tax
6. Property Taxes

8. Trivia

1. Why Banks Don’t Want to Foreclose on Your House
2. General Mortgage Fees
3. Home Owner’s Insurance vs. Renter’s Insurance
4. Negative Amortization: Explained
5. Mortgage Finance Glossary