According to Wikipedia, mortgage is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property through a process known as mortgage origination.
However the borrower repays the loan + interest over a specified number of years until they own the property. However, if the borrower, defaults or stop irrespective of the circumstances, the lender have the right to take possession of the property.
What are the ways of getting a mortgage? there are different ways which includes:
- Credit Union
- Bank
- Mortgage Banks
- online lender etc
Mortgages comes in different forms some are long time. However the common type are those of 30-year and 15-year fixed rate mortgages. However, that does not rule out some mortgage that are as short as five years. Although, the long years are preferred but Stretching payments over more years may reduce the monthly payment, but it also increases the total amount of interest that the borrower pays over the life of the loan.
