Answer :
When taking out a mortgage, people typically agree to the following terms:
1. A loan amount: This is the specific amount of money that the lender agrees to provide to the borrower to purchase a home. The loan amount is usually based on factors such as the property value, the borrower's income, and creditworthiness.
2. An interest rate: This is the percentage charged by the lender for the use of their money. It is a significant factor in determining the overall cost of the mortgage. The interest rate can be fixed (stays the same throughout the loan term) or variable (can change over time).
3. Payment terms: These include details such as the monthly payment amount, the number of years the borrower has to repay the loan (loan term), and any penalties for late payments or prepayment.
When considering the options listed in the question:
- Plans for repairs and renovation ideas are not typically part of the agreement when taking out a mortgage. Repairs and renovations are usually the responsibility of the homeowner and are separate from the mortgage terms.
Therefore, the correct choices from the list of options provided would be:
- A loan amount
- An interest rate
- Payment terms
