What does a mortgage consist of?

Question

I reall don`t know and would like to. Please explain in simple terms.

Answer 1

A mortgage is a conveyance of property to secure a debt. In simpler terms:

Real estate is typically expensive. A bank will give you money for it but only if you turn around and use the property (conveyance) as collateral. When you have a mortgage, you don't own the property, the bank does. That's why they end up with the property (foreclosure) if you don't pay. Contrast this with defaulting on plain ol' debt - the lender would have to sue and try to go after any assests to collect. A mortgage, by they way, is not the debt - even though it may seem like it is and it is integral to it. The debt is usually called a "note".

Answer 2

A mortgage is a loan by which you use your home, or a home, as collatoral. ie: if you fail to repay the loan, the bank or lending institutation forcloses on you (takes your home away and kicks you out.) It's a note (loan) which allows you to get a large amount of money if you already own a home, OR allows you to PURCHASE a home that you would otherwise not be able to pay the full amount for right away. Ie: I will get a mortgage note (mortgage loan) in order to purchase a house where the bank pays the seller of the home the full amount, and then I in turn repay the bank. If I fail to repay, the bank forcloses.

It's like any other loan other than the whole house part. You pay down the interest and (in most cases) the principal (or original) balance. You can also escrow your payments; paying your property taxes and insurance for the home as part of your payments.

There are so many different kinds. You can have 1, 2, or 3 mortgages on your home. I am not aware of possible 4th or beyond mortgages. It just depends on what the financial instituation will allow you to do. This means that you can use your home as collateral for up to 3 different loans.

There are mortgages that allow you to only pay interest, and others that let you pay less than the interested generated on the loan each month. Some have interest rates that are fixed (stay the same) for 10, 15, 20, 25, 30, 40, or 50 years. Others can adjust every month, every six months, or once a year (generally after having the same rate for 1, 2, 3, 5, or 10 years).

Believe it or not, in Japan they have mortgages that are on 100 year terms. (the mortgage is set to be fully repaid after 100 years).

Answer 3

No No No. A mortgage is a piece of paper. It is an instrument that pledges a property to securitize a note.
Mortgage=security instrument
Note= promise to pay

If you buy a house from me, and get a loan from a company. They give you a note (you promise to pay them x dollars) and you pledge a mortgage ( If i dont pay x dollars you can have the house).

Many other pieces to it, and people use these terms wrong all the time, but the note is the promise, the mortgage is the pledge.

Answer 4

A loan paid monthly with real estate (usually consisting of land and building) as collateral. Usual terms are 15 and 30 year mortgages but there are other options as well.

Answer 5

A Mortgage is like any other loan. you make a payment which consists of Principal(money that is payment towards the mortgage)& interest.You can add the home insurance & property taxes to the mortgage payment.
A Mortgage consists of
A) Principal
B) interest
C)Home insurance
D)Property Taxes (City & state)

Answer 6

mortgage is when you borrow money from lending institution using as pledge your real property like landownership, house. It is difference from chattel mortgage that you are going to deposit your movable property to where you can borrow money. Pledge is like the pawnshhop of surrendering your jewelty of valuable properties to borrow money

Answer 7

Please elaborate. A mortgage is a loan with Real estate as collateral....