2007-01-21 06:14:19 · 12 answers · asked by mohammad n 1 in Business & Finance ➔ Personal Finance
how banks/building societies make money.
they lend u money 2 buy a home & u pay it back, with interest.
link below can explain further.
2007-01-21 06:20:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
its a process of paying double for whatever you buy, usually a mortgage would be taken out when purchasing a home, but the interest charged on the loan makes the purchase very expensive in the longer term. If you can look for the lowest rate for the longest time possible, and if you can pay it off before the end of the mortgage term do so. On an average £100,000 mortgage you will pay an additional £105,000 in interest payments! Scary when you think of it like this but millions of us have mortgages and don't try to think of the extra payments. They do say you can't loose with property but I should think it would depend on the property, either way having a mortgage means the property is yours and there is nothing like having your own place.
2007-01-21 06:25:23 · answer #2 · answered by janet h 2 · 0⤊ 0⤋
A motgage is where you borrow a lump some of money and use your newly purchased house as security. In otherwords, if you dont pay the mortgage repayments, they take your house.
Even if you own a house, you can still take out a mortgage. Its not just for buying houses!
2007-01-21 06:24:10 · answer #3 · answered by Jon F 2 · 0⤊ 0⤋
A mortgage is where you borrow money from a bank in order to purchase a property
2007-01-21 06:18:06 · answer #4 · answered by paul t 4 · 0⤊ 0⤋
A) A mortgage (in real estate terms) is the amount you borrowed to buy a house (building, land,etc.).
B) For instance: you bought a $100,000 home, made a cash payment of $10,000, and borrowed $90,000 from a bank. What you owe ($90,000) is your mortgage. (simplified explanation).
2007-01-21 06:35:12 · answer #5 · answered by Puzzleman 5 · 0⤊ 0⤋
Mortgage is an agreement of payment.Someone takes a loan from certain organistion and give that organistion a right to take his possession as security of payment eg,house,car etc[ may be her husband /his wife I am just kidding]
2007-01-21 06:29:11 · answer #6 · answered by Anonymous · 0⤊ 0⤋
a) That weight around your neck that will never be alleviated until you (1) DIE or (2) eventually pay off by the time you are 107.
I would enjoy life but I have a mortgage.
b) A loan against your property
2007-01-21 06:21:52 · answer #7 · answered by Jenny 2 · 2⤊ 0⤋
it is a loan secured against a property [usually a house or flat] to enable you to buy the property it you don`t keep up the repayments the bank or building society that made the loan can take the property
2007-01-21 06:19:14 · answer #8 · answered by puzzled? 3 · 0⤊ 0⤋
you mortgage is your house payment. instead of rent its mortgage
2007-01-21 06:17:35 · answer #9 · answered by sophie 1 · 0⤊ 0⤋
The root of all evil in my life.
2007-01-21 06:19:09 · answer #10 · answered by Anonymous · 1⤊ 0⤋