Helpful Information On Mortgages

The first thing you'll want to do before you start looking at the various mortgages and mortgage lenders available is understand what a mortgage is, how the process works and who takes part.

Mortgages are simply methods of using your personal property or real estate to secure your payment of a debt. The term mortgage comes from the French word for death vow. It refers to the legal means that is used to secure the property, although it most commonly refers to the debt that is secured by that mortgage. In other words, the terms mortgage and mortgage loan are commonly used interchangeably.

In just about every jurisdiction mortgages are associated with loans that are given on real estate rather than on any other property such as water craft. There are cases where raw land is mortgaged as well. The securing of a mortgage simply means that individuals or businesses use the accepted method of purchasing either commercial or residential property without having to pay the full price on their own immediately. So there are residential mortgages and commercial mortgages commonly provided throughout the world on a regular basis.

It is far more common for either individual or commercial enterprise to seek out mortgages and mortgage lenders to buy real estate than for them to pay the full price for the property on their own. Nowadays mortgages are the way of the world. The most active markets for mortgages - where the demand for real estate is high - are the United States, the United Kingdom and Spain.

While there are some variations due to language constraints and colloquialisms, the two standard participants in mortgages are the creditor and the debtor. The creditor is, quite simply, the person or financial institution lending the money to buy the real estate or other property. The creditor has legal rights to that debt that is secured by a mortgage. The debtor usually lends to the debtor the money needed to purchase the property. Mortgage creditors are typically banks, insurance firms or other financial institutions such as credit unions. The two other common names for these creditors which are mortgagees or lenders.

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