Mortgage: ‘mortgage loans’
Mortgage: The following article will discuss mortgages, also known as ‘mortgage loans’, ‘liens against property’ and ‘claims on property’.
The mortgages are loans used by individuals and businesses to make large real estate purchases without need paying the entire value of the purchase up front. Banks and building societies are usually the bodies who lend. Mortgages are generally paid over a period of many years, usually 15-30, and they are secured by the collateral of the specified real estate property. The mortgage is paid back systematically over these years, using a number of predetermined payments. The borrower must also pay interest on the money owed until the individual owns the property, free and clear. If for any reason the borrower is unable to continue paying the mortgage, the bank can foreclose.
The most common types of mortgages are; annuity or capital and interest, interest only, endowment and pension-backed. The most popular mortgage for buying a home is annuity or capital and interest. Each month, the scheduled repayment is made up of interest and capital. The portion of capital reduces the total amount owed. During the early years of repayment, mostly interest is paid, but as the years go on, increasing amounts of the original capital gets repaid... MORE INFO HERE
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