What is a "pledge"
A mortgage is a secured debt given by the guarantee of real estate, the borrower is required to pay a predetermined set of payments. Mortgages are used by individuals and businesses to make major purchases of real estate without paying the full value of the purchase in advance. Over a period of several years, the borrower pays the loan, plus interest, until he / she finally has the property free and clear. Mortgage loans are also known as "liens against property" or known "property claims." If the borrower fails to pay the mortgage, the bank can take.
Till next time
Fixed rate mortgage
Adjustable rate mortgage
primary mortgage market
Alternative Mortgage Transaction ...
Degradation of "deposit"
In a residential mortgage is a home buyer to the bank. The bank has a claim on the house in case of default home buyers in the mortgage payment. In the event of foreclosure, the bank can evict tenants of the house and sell the house to extinguish the proceeds from the sale of mortgage debt.
Mortgages come in many forms. With a fixed rate mortgage, the borrower pays the same interest rate over the term of the loan. Your principal and interest monthly payment is not the first mortgage payment on this change. Most mortgage fixed rate loans have a term of 15 or 30 years. If market interest rates rise, the payment the borrower does not change. When market interest rates decline significantly, the borrower may be able to evaluate, to make more mortgage refinancing. A fixed rate is also called a "traditional" mortgage.
With an adjustable rate mortgage (ARM), the interest rate for an initial period is set, but varies according to market rates. The initial interest rate is often lower market rates that are affordable mortgage seems like it really is. When interest rates rise later, the borrower may not be able to afford the higher monthly payments. Interest rates can also reduce a cheaper ARM makes. In all cases, monthly payments are unpredictable after the first period.
Other less common types of mortgages, such as interest only mortgages and payment-option ARM, are best used by sophisticated borrowers. Many homeowners in financial difficulty with this type of mortgage in the years of the housing bubble.
