What is a mortgage?

hassen1 · #1 (**permalink**) 15th November 2006, 09:35 PM

What is a mortgage? Most people can't hand over a $500,000 check to purchase a home. They must borrow from someone who'll want collateral. The mortgage is a written document that creates a lien on real estate as security for the payment of a specified debt. This is accompanied by a separate document called a mortgage note, which is a written agreement to repay a loan. The note states the actual amount of the debt that the mortgage secures and the manner in which it shall be paid.

hassen1 · #2 (**permalink**) 15th November 2006, 09:35 PM

Mortgage Payment.

What is included in my mortgage payment? Your total housing expense consists of principal, interest, taxes and insurance. The mortgage loan payment usually includes the principal and interest amounts. Taxes refer to real estate property taxes and are based on the market value of the property. Insurance is a type of real estate insurance that provides protection against loss due to fire and other risks. Taxes and insurance may be required to be paid with the monthly payment depending on various factors.

When you go through the home-buying process, it is important to obtain a referral to a qualified real estate agent and mortgage broker or lender. They will educate you and do their best to make the home-buying process an educational and exciting experience.

mini_0 · #3 (**permalink**) 5th May 2007, 01:07 PM

It is like home loan in a different way .A mortgage loan is usually used by first time home owners to finance the purchase of their home. Once you have made the decision to buy your own home you will have to start saving money for the down payment. Most of the banks and financial lending agencies do not give applicants a loan for the full purchase price of the home. You will have to pay the balance in the form of a cash deposit.It is a good idea to get all the documents ready before you actually apply for the loan.