An Ancient Mortgage?
There once was a fisherman who wanted to build himself a new shack. The shack, sitting near the body of water he fished in, would give him a place to store his fish, shelter and a feeling of home. The fisherman, however, did not have the means to build his shack. When he told his story to the local blacksmith the blacksmith told him he would build the house if the fisherman would give him 1,000 pounds of fish. The fisherman man was successful at his craft but he did not have 1,000 pounds of fish and could not afford to save all that fish to give to the blacksmith and continue to live his life regularly. Both men where at a loss, until the blacksmith developed a clever idea. If the fisherman gave him more fish then deemed worthy for the shack, 1,500 pounds, he could pay the blacksmith in installments of 100 pounds per month. The deal was agreed upon and both men were happy. The fisherman got his shack built and could afford to give up 100 pounds of fish a month to pay the blacksmith. The blacksmith got more fish then he deemed worth the effort of building the shack.
This old fable does a wonderful job in describing how a mortgage can work and how it can be beneficial. Most likely you, like the fisherman, don't have the current means to buy a new house. Houses cost hundreds of thousands of dollars and it can be to much for the average person to afford. You can take out a mortgage loan, however, and pay for your house in installments over the course of 15-30 years. It is the number one way to finance a house. You found your new house; now find your new mortgage.