MORTGAGE LOANS
A Mortgage is a type of loan in which property or real estate are accepted as a collateral (asset pledged by a borrower to a lender in return of loan). The borrowers receives some amount of loan from lender upon agreement to return amount over a set time span until the complete loan amount is return back to the lender. Mortgage loan are of different types based on their term dates (depended on institution), amount of payments per period and interest rates. Generally mortgage loans are taken by the individuals and business owners to make large real estate’s purchases without paying the complete value of the purchase up front. For a period of many years, associated interest, the borrower repays the loan, until the borrower completely owns the property free and clear. Mortgages are referred in different terms such as “loans against property” or “claims on property”. If the borrower stops paying the mortgage, the bank can foreclose. Mortgage loans comes in different types based on interest rates.
