The basics of Mortgages
Written by kiwi on July 7, 2008
Mortgage involves the disbursement of money against a security of the borrower’s property such as house, land, and other valuables. The possession of the property is returned to the borrower on the repayment of the loan amount along with the interest that is charged on the loan. Mortgages are also considered as a guarantee for the money provided by the lender to the borrower.
Mortgage is not regarded as debt in itself, but it is the verification of the debt. The interest or the potential earning of the land property is transferred from the borrower to the lender. The terms of the mortgage states that the possession of the land or the mortgaged property would be returned to the owner if he repays the entire debt within the term period.
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