In order to find the best mortgage product for you, it is important to first understand what a mortgage is.

A mortgage is a financial instrument typically used for the purchase of a house. A borrower receives a loan for the purchase of a house which is, in turn, secured or collateralized by that house.

An arrangement is made for regular payments over a period of time in order to pay off the loan.

HOW IS A HOME'S VALUE DETERMINED?

You have several ways to determine the value of a home. An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality.

This service varies in cost depending on the price of the home. On average, an appraisal costs about $300 for a $250,000 house.

A comparative market analysis is an informal estimate of market value performed by a real estate agent based on similar sales and property attributes. Most agents offer free analyses in the hopes of winning your business.