Mortgage loan

Some 20-30 years ago, few heard the word “mortgage loan”, and only a few of them knew about its meaning. Then, however, the situation began to change and the above term began to appear more and more often. Today, the word “mortgage” was heard even by schoolchildren, and many people know what it means. But not all, so right now we will tell you what bad credit mortgage loans are, and with simple words that are understandable to the common user.

What does mortgage mean?

The term takes its name from the Greek word Hypotheke, which can be translated as “pledge” or “mortgage.” They say that the term Hypotheke began to use several thousand years ago, when the lender gave a certain amount to the borrower and installed a pillar on its land plot where the name of the borrower and the amount of the debt were written. If the borrower did not return the required amount on time, the lender could pick up the area on which the pole was located.

Anyway, today the word “home mortgage loans” has a different meaning. So, a mortgage is a certain form of collateral, in which the borrower is paid an amount against the security of the property that the borrower cannot sell or transfer without the consent of the lender. Let us examine a simple example. Suppose there is a person who decided to buy an apartment. Since the cost of housing is very high, he decides to go to the bank (to the lender) to get a mortgage loan. If the bank agrees to issue funds to the borrower, he looks for an apartment, draws up a contract and purchases housing, the mortgagee of which is the lender, that is, the bank in our case. Accordingly, until the debt is fully repaid, the borrower cannot sell the apartment or transfer it (donate), for example, to his relative, since this requires the permission of the pledgee. But the bank may deny the request to the borrower, since it has the full right to do so.

Best mortgage loans are usually long-term, that is, issued for 10, 15, 20, 25 and even 30 years. Also they suggest best mortgage loan rates today. This is not surprising, since taking into account the interest rate on the loan and other payments, including property insurance, the monthly payment is on average from a few thousand upwards. For large cities best home mortgage loan rates are much higher. Mortgage loan companies offer various programs for the purchase of mortgage housing, which may also differ in interest rates. Often the most profitable online house mortgage loans are with state support, which allow for significant savings.

Conditions and features

On the website of many banks there are special calculators that allow you to calculate the amount of the monthly payment and even the total amount of payments for refinance home mortgage loans. But do not forget that this does not include additional payments, of which there may be plenty, including the assessment of housing and compulsory property insurance. By the way, despite the fact that the mortgagee is a bank, the apartment belongs to the borrower. For this reason, a lender, who is a bank, cannot simply pick up an apartment for the purpose of selling it to pay off a debt if the borrower does not pay for one reason or another. This can be done only through the courts.