Mortgage is a common term in our society and many people will never stop to think about its meaning. For most people - even those who own a mortgage - this term simply means a loan that was taken out to buy a property.
However, mortgage loans differ from other types of loans - especially because it has a major use, and because under the mortgage contract, the equity in the real estate is transferred to the lender as a guarantee to increase the cash level. Therefore, the mortgage contract itself is not an actual debt, but a guarantee that the debt will be repaid. The contract also provides that once the terms of the debt are repaid, the interest on the property will be returned to the borrower.
The word "mortgage" itself comes from Old French, meaning "commitment of death." This means that when the mortgage is fully repaid or the property is foreclosed and restored to ownership of the lender, the termination of the mortgage comes or dies.
A mortgage lender is usually a professional investor who provides cash for the purchase of a property. Their main profit comes from the interest rate on housing loans, but in some cases, if the mortgage holder defaults on the loan, the property is eventually sold.
The borrower is legally required to meet the terms and conditions of the loan or the risk of foreclosure - the acquisition and sale of its property. This high risk usually requires one or both parties to conduct transactions through legal representatives, which is called "transfer" in the UK. In addition, there are so many mortgage loans that usually purchase consultant services before applying for a loan.
Mortgage loans have become a ubiquitous form of lending in most of the world's real estate markets because few individuals have enough cash to purchase real estate. This is the only way most people really want to actually have their own home or commercial concessions.
This also makes the mortgage lending industry so large that many economies use lending to pay for real estate. Many analysts believe that the credit crunch that led to the current global economic recession began in the United States, when lenders returned borrowers to borrowers who could not actually repay the loans, which caused a serious chain reaction to our wider world economy. Today, Still feeling.
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Orignal From: Mortgage - Important facts
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