Mortgages
A mortgage or mortgage loan is a loan secured by a physical property through the use of a mortgage note. The note is evidence of the loan and the property is the collateral, among possible others) that secures the mortgage loan.
When buying a home, a buyer or builder will approach a bank or other financial institution to finance the loan. The mortgage will generally have several characteristics, such as:
• Size of the loan
• Maturity (or duration) of the loan
• Interest Rate on the loan
• How the loan is paid off
• Points on the loan, if assessed
• Down payment, if any
In the United States, few individuals have enough in their savings to purchase a property outright. In countries where the demand for home ownership is highest, strong domestic markets have developed.
The word mortgage is a Law French term meaning “dead pledge,” apparently meaning that the pledge ends (dies) either when the obligation is fulfilled or the property is taken through foreclosure.
Use our basic mortgage calculator below.
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