2007-01-31 06:03:03 · 9 answers · asked by rednipur 1 in Business & Finance ➔ Renting & Real Estate
A lends B money to purchase a house from C.
If B doesn't pay A back, A takes B's house away.
2007-01-31 06:06:15 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Bit of a question, this.
A mortgage is an organisation lending you money to purchase property with a repayment term over a period of years - normally 25. However, the lender has a legal charge over your property, which means that the property cannot be transferred to another without the mortgage first being paid off.
Further, if you default in the mortgage, the lender can repossess the house and resell it. They would then take the money owed to them in arrears, the balance of the loan, and their charges for obtaining possession, and return the balance to you. In reality, the money raised is usually less than the loan and you end up with no house and still owing them money.
however, mortgages are a necessary evil, for without them no-one could afford to buy their own home
2007-01-31 06:09:30 · answer #2 · answered by Bob Danvers-Walker 4 · 0⤊ 0⤋
The biggest cost anyone has to bear in life. However, a Mortgage Protection Policy should be considered because in this day and age with up to 5 times the income of the Mortgagor being offered, any failure to pay, because of matters covered by such a Policy, the onus of responsibility would be less worrying.
Payment on time is essential but from one who has discharged two Mortages and a business loan in 40 years of trading and living in two houses, the result is well worth it!
2007-01-31 06:12:21 · answer #3 · answered by MANCHESTER UK 5 · 0⤊ 0⤋
You sign up to pay for a house with a Building Society, then you proceed to pay back thousands of pounds in interest, and with luck, when you retire you MAY own the house, or leave it to your Kids, or use the equity to pay for your Nursing Home Fees!
2007-01-31 06:08:50 · answer #4 · answered by Greybeard 7 · 0⤊ 0⤋
It means taking a loan out on your house!
2007-01-31 06:09:15 · answer #5 · answered by TechHelp 2 · 0⤊ 0⤋
Tie a bloody great rock around your neck and carry it around for 25 years. That'll give you some idea.
2007-01-31 06:08:55 · answer #6 · answered by CHRIS P 3 · 0⤊ 0⤋
WHAT??...Basically it is a monthly bill that you are expected to pay every month(even when you don't feel like it!) and the bank will in turn let you stay in your house...If you stop paying they in turn stop letting you stay there..ss
Usually it includes your principle, interest, mortgage insurance, taxes and home owners insurance...
2007-01-31 06:07:56 · answer #7 · answered by Anonymous · 0⤊ 1⤋
money, property, even more money, even less property, eventually your soul...
Umm dude, talk to a bank. If you really need to ask the question, YOU CERTAINLY DON'T NEED ONE.
2007-01-31 06:06:33 · answer #8 · answered by Anonymous · 0⤊ 0⤋
i think it's a loan to buy a property with
2007-01-31 06:48:01 · answer #9 · answered by sb85 2 · 0⤊ 0⤋