What is a mortgage?
“Mortgage” is nothing more than the
name given to a particular type of loan; in this case, a real estate loan. Like any other loan,
it is really an IOU—that is, a promise to repay a sum of money received today
at some future time.
Mortgage as security for payment that returns after payment that is a secured loan
Mortgage is a conditional conveyance
of land designed as a security for the payment of money, the
fulfillment of some contract, or the performance of some act, and to be
void upon such payment, fulfillment or performance
A mortgage is a loan from a bank or a financial institution that helps
the borrower purchase a house. A mortgage is secured by the
home itself, so if the borrower defaults on the
loan, the bank can sell the home and recoup its losses. Mortgage payments
are usually monthly and consist of four components: principal, interest, taxes, and insurance.
Mortgage is, in English Law, a
disposition of property to another in the security of a debt, in a supplement of a personal contract for payment of the debt. Mortgage (Mortuum Vadium, dead
pledge) is so - called because, in
many cases, the mortgagor does not
perform the condition in the provision for redemption and the pledge is
forfeited
Deeper definition
The amount of a loan is just that—a sum of money that the borrower receives upon signing the loan agreement. The term (or
maturity) of the loan is the length of time over which the loan amount is to be
repaid.
Before getting a mortgage, the borrower agrees to certain terms and
conditions. These specify how long she has to pay the mortgage back, which can
span decades, and how much she has to pay each year as well as what she’s
required to pay at signing, which is a percentage of the home’s cost called
a down payment.
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