What exactly is a mortgage?

Question

I thought it was the repayment on the loan for the house but I think its far more complicated than that. Can someone enlighten me?

Answer 1

A mortgage is the loan you get to finance the purchase of a home. However to get a mortgage, you have to pay a lot of fees like inspections, legal title searches, and other closing costs. Also, when you make payments, most mortgages come with an escrow account that you pay into where things like homeowners insurance and property taxes are paid out of. Some lenders will let you handle your own escrow account but it will add to your closing costs.

Most mortgage payments have 4 parts: principle, interest, taxes and insurance (PITI). The escrow account usually covers the taxes and insurance so those may not be listed separately.

Answer 2

No one has it quite right. When you borrow money secured by real estate there is a mortgage and a note. The note, or promissory note, is the actual promise to pay the money back and contains the terms of the repayment. The mortgage is simply a lien on the real estate for the amount borrowed. When recorded in the public records the mortgage lien may be enforced through a foreclosure in which a court will sell the real estate encumbered by the mortgage lien at public auction and use the proceeds to pay off the debt.

Answer 3

I think most have it all confused. The Deed of Trust and the mortgage are TWO separate and different things. They might work and mean the same for all of us but they are different.

A Mortgage is a loan that you promise to pay. The loan is secured by the title of your property. If you dont pay the loan the lender takes ownership of your title therefore your property as well.

A mortgage can have various and different options as someone mentioned before. It can have interest only, interest and principal, interest & principal & escrow account, etc, etc. Many even have a minimum payment (these are very dangerous loans). So, as you see you have many different options on which mortgage type you want.

Hope this info helps, good luck.

Answer 4

You owe your soul to the bank or company who loaned you the money for the next 30 years, unless you took the loan out for less time.

The first part of the loan, mostly pays for the interest. Once the interest is payed, then they deduct the amount you borrowed toward the home. If you want to add more money to the payment, make sure it's added to the principal, otherwise, you're just giving the money away on interest.


Hope this was helpful.

Answer 5

A mortgage consists of two documents: a deed of trust or mortgage and a promissory note. The deed of trust or mortgage document is given as security for the promissory note. The note specifies how much is owed, the interest rate and the terms of repayment. The deed of trust or mortgage specifies the borrower's responsibilities, remedies, and penalties for default.

Answer 6

A conditional conveyance of property as security for the repayment of a loan

Answer 7

A mortgage is the loan on the house. The time and amounts to repay that loan is the amortization.

Answer 8

A mortgage is an agreement between you and the lender wherein the lender loans you money for the purchase of real estate secured by the real estate that is to be purchased.

Answer 9

A opposite personal loan is a private loan for senior belongings proprietors that makes use of element of the homestead’s fairness as collateral. The personal loan frequently does not should be repaid till the astounding surviving homestead proprietor completely strikes out of the belongings or passes away. on the instant, the belongings has about 6 months to pay off the soundness of the opposite personal loan or promote the homestead to pay off the soundness. All ultimate fairness is inherited by using the belongings. The belongings isn't in my opinion reliable if the homestead sells for decrease than the soundness of the opposite personal loan. in the variety of lack of existence or in the shape that the homestead ceases to be the accepted position of abode for more beneficial than 365 days, the homestead proprietor’s belongings can opt for to pay off the opposite personal loan or placed the homestead up on the marketplace. A opposite personal loan won't be able to be outlived. as long as a minimum of one homestead proprietor lives in the homestead as their accepted position of abode and keeps the homestead in accordance with FHA criteria (protecting taxes and insurance modern-day) the inner most loan does gained't develop into due.

Answer 10

No, you pretty much hit the nail on the head.