What Is A Mortgage?

One of the most well-known bank products is mortgage. It is a type of property-related financing characterized by an advance of money to be repaid periodically with interest .


what exactly is a mortgage? What are its features? Are there many types? We will discuss these and many other questions .For example, imagine you want to buy a house, but you don’t have the money to pay for everything.


You then approach a lender or bank that agrees to provide that money in exchange for the security (or mortgage) of the home you are about to buy. Instead, he will have to pay you back the money he gave you, plus some interest over a period of time.


If you don’t, this agreement allows the lender to keep your .We can say that a mortgage is a security right because it secures the payment of the debtor, otherwise the creditor owns the real estate that guarantees the money he pays to that .These terms are often thought to be synonymous,


meaning they mean the same thing. However, the truth is not like that. On the one hand, a mortgage is a security between a borrower and a lender. But on the other hand, a mortgage loan is money that a bank, or banking organization


, lends to a buyer so that they can refinance the .In other words, at the same time, a mortgage loan is a loan issued by a bank or a banking organization


. When it comes to a mortgage, the lender is not a bank, but a person. This mortgage must be registered in the Land Registry, because if it is not executed, it will have no meaning and no payment of the sums will be


.When it comes to mortgages, there are certain elements to consider that are part of this concept. They are:
center. This is the amount of money required from the lender and paid in installments or periodically.


Be interested in. This is the additional interest that must be paid to obtain the required amount of money. It can be of different types.


A term. You must pay back the money you loaned to the borrower with interest.


Mortgage. It is a guarantee payment to the lender or bank to take ownership of the real estate in case of .Mortgages can vary. And there are different classifications that offer us different terms. So, the most common ones rate mortgage



. It is characterized by the fact that the interest payable in addition to the money given to you does not change during the time you agree to pay back the amount.


Variability of mortgage loans. Unlike the previous ones, here there is a variation of the interest rate, which can be higher or lower.


Mixed mortgage. They combine two types of interest, that is, fixed and variable. Thus, one part of the interest is fixed, while the other part has a variation on the reference, which is usually .Fixed payment.


This is the most common type of mortgage because the monthly payment remains fixed, meaning the monthly payment does not change.

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