House and Mortgage Home
Mortgage is basically a system using any kind of property, be it personal or real, as a security against the payment of some debt. It is commonly referred to as a means to secure a debt. You can mortgage your residential property, your commercial property, your shares or any of your other assets to obtain a loan from some mortgage banker such as a bank, a person or a company. In such a system you keep some of your assets as a security to get a loan. The amount of loan depends on the value of the asset that you are keeping as a security. In most of the jurisdictions mortgages are related with loans taken on real estate. Such a system allows for easy buying of any kind of real estate, either residential or commercial, without paying its full value.
Terms Associated
There are certain common terms associated with a mortgage. These are usually used in the market and anyone associated with the mortgage market should know them. Some of these terms are,
Creditor:
A Creditor is the main financial body that debts the loan to the debtor for the purchase of the property. Creditors include banks, insurers and some other financial institutions making available loans for the purchase of real estate. A creditor is also sometimes called as a lender or the mortgagee.
Debtor:
A debtor is the one who takes money on loan from a creditor for the purpose of purchase of real estate through mortgage. Debtors are generally any individuals, landlords, home owners or businesses that are taking money from the creditor on loan through a mortgage. A debtor can also sometimes be called as a borrower, obligor or the mortgagor.
Conveyancer:
A Conveyancer is a person in charge of all the legal works and acts a common link between the creditor and the debtor.
Due Dilligence:
This refers to doing inspections on the property to protect your investment. Some examples can be physical property inspections and
termite inspections.
Mortgage Broker:
A mortgage broker is person acting as a link or as an intermediary, sourcing mortgages on an individuals' or businesses'
behalf.
Mortgage Types
There are many types of mortgages. Two basic types of mortgages are the Amortized mortgages and the Fixed Rate mortgages. Yet another type is also very popular that is Adjustable Rate mortgage. A few other mortgage loan types are listed below.
- Assumed Mortgage
- Blanket Mortgage
- Budget Loan
- Balloon Mortgage
- Bridge Mortgage
- Buydown Mortgage
- Equity Loan
- Foreign National Mortgage
- Jumbo Mortgages
- Reverse Mortgage
- Seasoned Mortgage
- Repayment Mortgage
- Wraparound Mortgage
- Non-Conforming Mortgage
For information on mortgages refer to our pages on
Mortgage Finance
Mortgage Insurance
Mortgage Brokers
Mortgage Rates