What is a mortgage?

Question

Is it rent in another word or is it different for a business? "Monthly mortgage payment". It's not the same as rent, right?

Answer 1

its when you buy a house. your monthly payment is reffered to as a mortgage. it is like rent but the money is going towards paying off your home...it also gives you tax breaks...when you rent you are paying some one else mortgage plus monthly pocket money for the land lord...

*any further questions, feel free to email me*

Answer 2

There are two answers...

When people talk about a mortgage they are really talking about the loan they obtained to buy a house. Mortgage payments are the monthly payments you pay to the lender.

Technical the above use is not correct. A mortgage is given by a borrower to the lender (not the other way around) to secure a loan the lender is making to the borrower. It is the security agreement that pledges a house as collateral. It is not the loan.

Now, in some states people get loans and they do not give the lender a mortgage to secure the loan. California is an example. What is used there to secure the loan is a trust deed. In many ways you can think of it as a mortgage. If there is a foreclosure there is a difference. The trustee has the legal right to sell the home and pay off the lender. No legal action involving a court is needed. In mortgage states you go to court to foreclose.

Answer 3

Mortgage is the term used to secure enough money to assist or purchase a house for a person to occupy or to rent to others. The monthly payment is simply called the monthly mortgage payment.

Though monthly rent and monthly mortgage can be compared because both does the same thing and that is pay for you right to occupy the place in which you are living.

A monthly mortgage is applied toward the reduction of the cost of your house in which you have ownership. It can also have tax consequences

Rent is paid to the owner of the property in which you have no ownership what so ever no matter how much you pay or how long you pay.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 4

A mortgage is not rent payment.

A mortgage is a loan you take from a bank, specifically to buy a house or property. The property and/or house is used as collateral for the loan.

Sometimes mortgage monthly payments can be the same *amount* as you would pay for rent, but they are usually higher.

When you are through paying off the mortgage (in 30 years or 15 years) you own title to the house. In the mean time you have what's known as a deed to the house, and the mortgage company holds the title.

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Answer 5

You get it when you can't pay for your house right away. You can go to a bank or a credit union for it(well that's how it is where I live, I don't know if you have credit unions).

So you pay a down payment....that's just the first set of money you have to pay, then you'll have to pay a certain amount of money every month after (these are called monthly installments) for a certain amount of years-like 15,20, or maybe even 25 years. If you can't pay the rest of the money, or you stop paying, then the bank can take the house/land away.

Anyway,when you add it all up, a mortgage is MUCH more expensive than just buying the house "upfront",but its more convenient for people who don't make all that money at one time.

Answer 6

Mortgage is just another way to say loan on a house.

The loan is secured by the house so if you don't pay your loan the bank can reposess your house (better known as foreclosure)

The payments on the loan are your mortgage payments and not the same as rent.

Answer 7

A legal document that pledges a property to the lender as security for a payment of a debt.
That is a Mortgage anything else is a spin!

Answer 8

Not the same as rent. Mortgage is a loan you take against a home you own.

Answer 9

with a mortgage, you are making payments toward owning the property. With rent, you are just paying the person who already owns the property to let you live there - you do not own it.