Owning your own home can be a very satisfying feeling. Having a place that you can renovate, decorate, and design however you like it feels mounds better than having to ask your landlord if it's okay to paint the walls. But, buying a home can be a complicated task, especially if you don't know the basics of mortgages.

Thankfully, mortgage companies are always more than willing to help out potential homebuyers and show them the ropes of the industry. Knowing just a few mortgage basics before jumping in with both feet can be extremely beneficial to those looking to buy a new home, especially first time homebuyers. 

The most simplistic definition of a mortgage is a loan used to purchase a home. However, mortgage companies will inform their clients that there is a lot more to a mortgage than simply defining it as a loan. Underneath the surface, there is much to learn and a lot to take in about mortgages.

There are two basic types of mortgages, a fixed-rate mortgage and an adjustable-rate mortgage. With a fixed-rate mortgage, the interest rate at the time the loan is acquired will remain the same throughout the duration of the loan. Borrowers looking for stability tend to choose this option as their payments will be the same each month.

With adjustable-rate mortgages, initial payments may be lower, leading borrowers to choose this option from mortgage companies. However, rates may be subject to change at any time, so borrowers should be confident they will be able to make larger payments in the future if their rates go up. 

 Shopping for the right mortgage is crucial to getting the best loan for the best rates. It's often a good idea to shop around various mortgage companies and explore various rates, closing costs, etc. to help ensure you're choosing the best option for your unique financial situation.  

Before looking to get a mortgage, potential homebuyers should also be aware of their credit score and attempt to clean it up if necessary. A better credit score will likely yield a lower rate on a mortgage, so tying up any loose ends on your credit can be very beneficial.  

The best way to ensure you're getting the best deal on your mortgage is to know the basics. Asking local mortgage companies, consulting family and friends who own homes, and doing some simple research online are all great ways to learn about mortgages. The more you know beforehand, the easier and less confusing the process will be in the end.