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noellangwe18
posted on: 6/21/2025
Risks of mortgages
Mortgage as from the previous post
Is a Big Loan for a Long Time
You're borrowing a huge amount of money from the bank to buy your home, and you'll be paying it back for many, many years. This means:
--Your Payments Can Change: Sometimes, the amount you pay each month can go up, making it harder to afford if you're on a tight budget of Your House Value Can Drop: The house you bought might become worth less than what you still owe on the loan. This is tricky if you need to sell.
-- Life Happens: If you lose your job or get sick, it might be tough to make those monthly payments. If you miss too many, the bank can take your house away (that's called foreclosure).
--Hidden Costs
It's not just the loan payment. Owning a house also means:
1). You Have to Fix Things: Roof leaks, broken heaters – stuff like that costs money to repair, and it adds up!
Other Bills: You'll also pay property taxes and insurance every year.
--The Bottom Line
A mortgage is a really big commitment. The main risks are:
1). Can you always afford the payments, even if they change or if your income changes?
2).Will your house always be worth at least what you owe on it?
3).Are you ready for all the extra costs of
owning a home?..