What's a morgage?
2007-08-15 13:11:56 · 14 answers · asked by Jeanne O 1 in Business & Finance ➔ Personal Finance
the bank lets you borrow money for somthing. you then have to pay it off every month or at the end of your term, with interest. (so they tack on an additional percentage of what you borrowed)
2007-08-15 13:16:40 · answer #1 · answered by trick 4 · 0⤊ 0⤋
First, its a mortgage (with a t).
A mortage is a set amount of money you borrow from the bank to buy a house. The seller of the house (previous owner) will ask a set amount and the buyer will either pay that amount or negotiate for a lesser sum. When agreed, the buyer goes to the bank, asks for the money and if approved, the money will be sent to the seller and you will own the house!
You will then have to pay a monthly fee back to the bank for letting you borrow their money. Typically they are 30 year mortgages (so take the price of the house and divide by 30) and that would be your yearly payments (divide again by 12 to see the monthly payments).
2007-08-15 13:20:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A morgage is only for homes...they are so you can live in ur home...a bank lends you money for ur house...whitch u will have to pay every month..or at the end of ur term(the time ur due to pay the money back)and you also have to pay back the money with intrest(charges from the bank because they lent you the money)..hope this helps you!=DD
2007-08-15 13:23:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Think of a mortgage as a big loan from a bank to buy a home. Homes cost sometimes hundreds of thousands of dollars. No one has that kind of money just saved in the bank. So, you go to a bank, and say you are buying a home for 150,000. You borrow that, maybe a little more, and have say 35 years to pay that off, with interest. The interest is the cost that the bank is going to change you to make money for themselves. No way around that, its just the way it works. However, interest rates do vary from bank to bank and state to state, based on where you are buying your home.
2007-08-15 13:18:55 · answer #4 · answered by tigerslam 2 · 0⤊ 0⤋
morgage is the name of a campaign in which government sells houses collectively and in better ways(for customers) of paying.Thus goverment can sell a lot of houses and people can buy houses in less prices.
2007-08-15 13:20:04 · answer #5 · answered by emrekaplanasd 1 · 0⤊ 0⤋
A mortgage is a method of using property (real or personal) as security for the payment of a debt.
The mortgagor (usually a bank) then has a lien on the mortgaged property. If you default on the loan they can take the property.
2007-08-15 13:19:09 · answer #6 · answered by sco0ter_one 2 · 1⤊ 0⤋
A loan to buy a home , secured by the lender holding the deed to the property until it is paid for .
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2007-08-15 13:19:18 · answer #7 · answered by kate 7 · 0⤊ 0⤋
A mortgage refers to the monthy payments you make in order to pay back the loan taken out on your house.
2007-08-15 13:17:52 · answer #8 · answered by Dr. D 7 · 0⤊ 0⤋
A mortgage is a loan that uses real estate as collateral. Home loans and building loans are examples.
2007-08-15 13:18:52 · answer #9 · answered by blue81696 2 · 2⤊ 0⤋
think of it as nothing but a eight letter word for a secure loan!!!
2007-08-15 13:34:10 · answer #10 · answered by Anonymous · 0⤊ 0⤋