What is a mortgage and when to use

What is a mortgage?

When you buy a house that has a very high value, and do not have the money to pay cash, a mortgage represents an opportunity to acquire it, without providing at once a significant amount of money.

A mortgage is a loan that is long term, which is supported on the mortgage of the house you are buying. If you intend to apply for a mortgage, you need to analyze before if able to take one to know, answer the following questions:

Of my normal expenses, how much I can save to pay a loan?
Am I consistent in my savings?
Do I have any other debt you are paying?
Have I failed in my payments?

When should you use a mortgage?

Taking on a mortgage should not become a burden that prevents us from solving the most necessary expenses, therefore payments we make a loan should not represent more than one percentage defined (perhaps 25% or 30% ), then we must take into account that the credit contract, means committing to pay that amount for many years. Therefore, it must take the credit alone;

When we have enough money to buy the house.
When there is a heavy burden of our salary.