In this modern word, earning money is very difficult. For those who receive monthly salary are very difficult to get salary increase. You may receive salary increase after several years of work. After expecting too long your salary increase usually not as much as you expected. On the other hand the daily need is increasing the value of your money seems lesser and lesser. 5 years ago you can bring home to much grocery stuff with $50, but now you may able to bring home small plastic bag of your families need. This is common problem for average family have to face day by day.

For those who self employed are no different. The business competitions are very tight. For small business owner it is very difficult to get the profit they want. This is contradicting with those big corporate businesses that almost occupy every aspect of the business available.

On such above situation, it is almost impossible for ordinary man to raise certain amount of money to finance big project like buying home or car. They may able to collect that money, but will require very long period of time. Therefore if you need to finance the house that obviously needed your family, getting loan or mortgage is the only option available.

On the other hand a loan it self defined as a property or a sum of money that has been given to the borrower under the certain condition that usually mentioned in the agreement in which the borrower agree to re pay the amount or equivalent in determined of time. Loan actually can be form of debt in which known by a promissory note, bond or an oral promise to re fund back. In addition, loan is provided a cost of interest. This interest is then can be accumulated along on every term of loan agreed between both parties…to be continued in part II.