2007-11-15 13:40:59 · 14 answers · asked by ? 4 in Business & Finance ➔ Renting & Real Estate
Getting a mortgage is borrowing money from the bank to buy a house.
Re-mortgaging your home is using your house as a guarantee/surety to borrow money against (generally a bad idea).
2007-11-15 13:45:20 · answer #1 · answered by Anonymous · 4⤊ 0⤋
My home cost $250,000. I didn't have that in the bank, but I had a job. So I got a mortgage (a home loan). The bank lent me the money to buy the house, and I agreed to pay the bank back over 30 years. Most American home owners have a mortgage, because few people have the cash sitting around to buy a house with cash. Because of the US tax system, home mortgages are a good idea.
P.S. It makes a great deal of sense, if you are in the USA, to buy a home with a mortgage. It allows you to pay for the home over time, as you work and live in the house. I strongly recommend it.
2007-11-15 13:53:30 · answer #2 · answered by hottotrot1_usa 7 · 1⤊ 0⤋
To mortgage your house means to go to a bank, and ask the bank to lend you money based on the value of the home. The bank will send an appraiser out to look at your house inside and out, and guess about how much he thinks people would pay for your house. He also calculates based on other homes in your neighborhood as to how much your house is worth. The appraiser then tells the bank, who then decides how much money they can afford (or risk) giving you based upon your paychecks and previous history with other banks. They write up a thick stack of paperwork when you put your house up for mortgage. That paperwork tells you how much you're able to borrow, and most importantly how much you have to pay back each month to repay all of the money they're going to give to you. The bank then writes you a big check and you get a lot of money.
Basically you are selling your house to a bank, they give you a big sum of money, and you spend 30 years trying to repay the money plus interest.
2007-11-15 14:01:39 · answer #3 · answered by Kitty 1 · 1⤊ 0⤋
To put simply, it's a loan, but they put your property, or your house, up as collateral, meaning if you fall behind on repaying that loan (most banks consider three missed payments as the limit), the bank can foreclose on your mortgage and take your house. Before getting one, pay attention to the interest rate. Unless it's a VERY short amount you need, NEVER go for mortgages above 10% interest, because unless you're Bill Gates, you'll be falling behind on payments quickly. But if you're in need of a short amount of cash, go for a payday advance, so you can pay it off quickly. Also, Auto Title loans are similar, but your car is at stake instead of your house. Either, way, if you don't keep up with payments, you will get nailed. Best of luck to you.
2007-11-15 13:50:59 · answer #4 · answered by Anonymous · 1⤊ 0⤋
The Mortgage comes originally from the french language with it's original french meaning of:
"Death Vow'
Sounds morbid huh?... Anyway, moving on, Mortgage became the applied descripting term for a loan/finance granted over property which is held as the security for the loan whereby the 'lender' holds the right of sale of the security property to recover any due debt until either the debt has been fully repaid or the borrower dies.
Hope this assists you in your understanding...
2007-11-17 19:51:04 · answer #5 · answered by Anonymous · 1⤊ 0⤋
To put your home up for mortgage or to mortgage your house mean that you would use your house as collateral to get a loan. The amount of money you would be able to borrow would be based on the amount of equity you have in your house. Getting a mortgage to pay medical bills is a difficult decision. How much would you need for future medical bills and now much would you mortgage your house for in order to pay these medical bills? Normally medical bills are an ongoing debt. Using your house to pay medical bills might not be a good financial decision. Medical bills normally have no interest attached to them, while there are tremendous fees and points you would be required to pay to obtain a mortgage loan against your house to pay these medical bills. There are a few options in which you might obtain a mortgage against your house for any reason #1. Refinance Paying off your current mortgage loan. The remaining funds left after paying cost, points and fees would be yours to do as you please. #2.2nd mortgage Your first mortgage would remain in tact and not be paid off. You would obtain a different mortgage loan based on the equity in your property. Each month you would be required to pay your current first mortgage as well as your new 2nd mortgage. Some of the money would be used to pay all fees and point charged for you to obtain the 2nd mortgage loan, the rest is yours to do as you please and would be given to you in one lump sum. You would have an established monthly payment you would be required to pay each month. #3. Homeowner equity Line of credit (HELOC) Almost the same as a 2nd mortgage and is based on the equity you have in your house. This mortgage would give you a maximum amount of money you would be able to use. You would not be given any money up front. You would be given a check book at the close of your refinance transaction. You would write a check each time you would want to use any funds from your established account. You would also only pay for any money used, not the maximum you were approved for. If you were approved for $20,000 maximum and you only used $5,000 of the $20,000 you would only pay principal and interest for the $5,000 you would have used. I hope this has been of some benefit to you, good luck. "FIGHT ON"
2016-03-17 03:28:14 · answer #6 · answered by ? 4 · 0⤊ 0⤋
You give the bank a mortgage and you sign a promissory note. The mortgage puts a lien on the property that must be satisfied in order to transfer title or transfer ownership.
2007-11-15 22:26:54 · answer #7 · answered by Anonymous · 0⤊ 0⤋
A mortgage is simply borrowing money using your house as collateral, a lien will be put on your house. re-mortgaging is simply renewing/rewriting your existing mortgage. to put your house up for mortgage is to use your house as co lateral to borrow money!
2007-11-15 13:55:18 · answer #8 · answered by Anonymous · 0⤊ 0⤋
a mortgage is a loan secured through any lending institution. You may refinance your home, but if you are buying a home then you can apply for a mortgage if you cannot buy it outright.
2007-11-15 13:46:54 · answer #9 · answered by Anonymous · 3⤊ 0⤋
okay your hiome must be yours to start with you own it outright to put it up for mortgage go to bank and say home is mine value is $x want to borrow $y will you lend me ther money if yes then you have a mortgage
2007-11-15 13:44:38 · answer #10 · answered by bilbobagsend 6 · 0⤊ 1⤋