or a place to live?..
2006-12-22 18:48:20 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
a mortgage is basically a loan you get when you purchase real estate. your mortgage payment is your principal and interest payments. spred out over a set term. 15 or 30 years for most. since most mortgages are armortized you end up paying most of the interest early in the loan term and don't really start paying significant principal until later. ( this sucks but its pretty standard)
2006-12-22 18:56:23 · answer #1 · answered by QandA 3 · 1⤊ 0⤋
First, you don't get a mortgage for an apartment, unless you are buying the whole building. Next, the way a mortgage works is quite simple. You find a house or Condominium you like you put a down payment on the house (up to 25%) and you apply for a loan (Mortgage) there are several types and there are several interest rates too. If you are approved for the loan (Usually based on work history and credit history, you will almost never be approved if you have less than two years on the job and you will never be approved if you are behind in any payments) anyway if you are approved the lender (bank or other lending place) will send the owner or title holder a check for the amount you applied for. Then about two months later you start paying the loan back for the length of time you agreed to. Remember there are several types of mortgages and the interest rates vary quite a bit. Learn as much as you can before talking to a lender and know what you can afford to pay for house payment. I have only outlined the basics for you tonight, from here it gets more detailed. Good Luck
2006-12-22 19:07:36 · answer #2 · answered by tpbthigb 4 · 0⤊ 1⤋
You can't morgage an apartment unless you are actually buying an apartment, apartments are usually rentals or leases... But how a morgage basicly works is, they loan you money on your property, usually a home or car, and you pay back that loan at a specified interest rate, this may be fixed or veritable. If its fixed (Most common with long term agreements) the intrest rate wont rise and fall, it'll stay the agreed upon rate from the day you singe the morgage agreement. Veritable will change every time the national projected interest rate changes, so sometimes it'll drop, most of the time it will rise though. And if you don't pay it back, or defult on it, the morgage holder has the rights to come in and take the property specified on the morgage. Morgage's usually will also have certain require ments tacked on to protect the property from you or anything else that could happen to it, such as home owner's insurance.
2006-12-22 19:02:44 · answer #3 · answered by Mark G 7 · 0⤊ 1⤋
Apartments usually means a rental. However, in New York City, the term is used both for rentals and purchases. When someone owns an apartment in NYC, it refers to owning a Co-op (somewhat like a condo but ownership is structured differently).
In a condo, each owner directly owns his own unit in a fee simple manner, and has a shared/communal ownership of the common areas.
In a co-op, a corporation holds title to the land and the building, and offers shares of stock to prospective tenants. Each purchaser becomes a shareholder in the corporation by virtue of stock ownership and receives a proprietary (owner's) lease to the apartment for the life of the corporation.
2006-12-23 00:49:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Note to the 2 above me: ^^
People buy apartments all the time. It's very common in NYC and London. You may also know it as a Condominium, but it's still an apartment.
2006-12-23 00:19:54 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋