What Is Mortgages Loan?

In this article I will be writing about the basic concepts on mortgages and the different types of mortgages.

What is Mortgages?

A mortgage is a way of using property as security for the performance of a commitment to the loan.

So basically it secures as a promise that money borrowed from the bank will be paid in time and if anything happens the bank will have to take the property.

What is Reverse Mortgage?

kaikki halvimmat pikavipit when you buy a house, you get the loans and property will be deposited as the security for the loans. When you repay the entire loan the house will be given to you and you become the owner of the house. In the reverse mortgage, you have already own a house without any loans on it, you will get the some money to run your rest of the life giving your house to the banker as the security.

This means you won’t be needing to pay the tax as you are paying the loan amount monthly. In case you are getting income from that house from rent then the tax should be paid. Reverse mortgage is very useful for the people who are willing to apply for home loan.

Prepayment / Foreclosure charges

If you are foreclosing your home loans or prepaying the part of loans may charge you the extra fees from the bank. It is better while applying the loan itself ask them what is fees for prepayment and the foreclosure of the home loans. It is normal practice and good idea to prepay the loans when you have surplus money in your bank account, but if the bank is charging you more penalty on the prepayment, you have to see the different banks who is better in the foreclosing charges.