A mortgage loan is a loan secured by real property through the use of a note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most often used Read more…
Basic concepts and legal regulation According to Anglo-American property law, a mortgage occurs when an owner (usually of a fee simple interest in realty) pledges his interest as security or collateral for a loan. Therefore, a mortgage is an encumbrance on property just as an easement Read more…
There are various ways to repay a mortgage loan; repayment depends on locality, tax laws and prevailing culture. Capital and interest The most common way to repay a loan is to make regular payments of the capital (also called principal) and interest over a set term. This is commonly Read more…
United States mortgage process In the U.S., the process by which a mortgage is secured by a borrower is called origination. This involves the borrower submitting an application and documentation related to his/her financial history and/or credit history to the underwriter. Many banks Read more…
The mortgage loans industry and market There are currently over 200 significant separate financial organizations supplying mortgage loans to house buyers in Britain. The major lenders include building societies, banks, specialized mortgage corporations, insurance companies, and pension Read more…
Within the European Union, the Covered bonds market volume (covered bonds outstanding) amounted to about EUR 2 billion at year-end 2007 with Germany, Denmark, Spain, and France each having outstandings above 200.000 EUR million. In German language, Pfandbriefe is the term applied. Read more…
Mortgage insurance is an insurance policy designed to protect the mortgagee (lender) from any default by the mortgagor (borrower). It is used commonly in loans with a loan-to-value ratio over 80%, and employed in the event of foreclosure and repossession. This policy is typically Read more…
The Sharia law of Islam prohibits the payment or receipt of interest, which means that practising Muslims cannot use conventional mortgages. However, real estate is far too expensive for most people to buy outright using cash: Islamic mortgages solve this problem by having the property Read more…
Like any other legal system, the mortgage business sometimes uses confusing jargon. Below are some terms explained in brief. If a term is not explained here it may be related to the legal mortgage rather than to the loan. Advance This is the money you have borrowed plus all the additional Read more…
A controversial bill that would allow Federal judges to modify loans, forcing banks to reduce the payments of borrowers in bankruptcy got one step closer to becoming a law. The so called mortgage “cram-down” law passed in the House of Representatives yesterday 234-191 and heads to Read more…