Mortgage or mortgage loan is the process of purchasing real property with a loan that has to be paid back, little by little, over a period of time. The word is derived from a French word that means "dead pledge", as if to say that the pledge of having loaned for the property "dies" when either the property is fully paid for or it is taken back for foreclosure. Payment for any Houston home mortgage loan is called amortization, also bearing the root word mort, meaning "die".
Amortization can run on a schedule, a set period of time during which the mortgagor has to pay for the loan periodically. The amortization schedule is typically set to 30 years, giving the mortgagor ample time to pay for the loan and raise money for it. The amortization schedule, the amount to be loaned, and the transaction for the property are all recorded in a mortgage note.
A promissory note called a mortgage note gives evidence that the loan and transaction are consummate. The mortgage note also determines whether the loan is fixed rate mortgage, graduated payment mortgage, or adjustable rate mortgage. The mortgage note is used as evidence in property disputes and foreclosure proceedings to prove who are responsible for which obligations.
Mortgage concerns the transaction of real property, the definition of which may vary in every state. In the US, real property is defined as the land within a specified territory and every object attached to it such as infrastructure like buildings; wells and dams; and natural topographical features like ponds, lakes, and even trees. Real property also applies to estates with joint ownership of tenants like condominiums and patio homes.
Fixed rate mortgage (FRM) is the type of mortgage loan that demands the same interest rate throughout the amortization schedule. In an adjustable-rate mortgage (ARM), the interest rate may change according to fluctuations in the property's market value. An interest-only mortgage is sometimes practiced; here, the mortgagor only pays for the interest rate for a fraction of the amortization schedule. For example, if the amortization schedule lasts 30, only the interest is paid in the first 10 years.
There is mortgage insurance that helps mortgage lenders to get compensated from losses due to a default by the mortgagor. A default occurs when the debtor has not paid what is owed; this is similar to insolvency in bankruptcy law. Houston home mortgage insurance may protect the mortgage lenders from similar losses.
Amortization can run on a schedule, a set period of time during which the mortgagor has to pay for the loan periodically. The amortization schedule is typically set to 30 years, giving the mortgagor ample time to pay for the loan and raise money for it. The amortization schedule, the amount to be loaned, and the transaction for the property are all recorded in a mortgage note.
A promissory note called a mortgage note gives evidence that the loan and transaction are consummate. The mortgage note also determines whether the loan is fixed rate mortgage, graduated payment mortgage, or adjustable rate mortgage. The mortgage note is used as evidence in property disputes and foreclosure proceedings to prove who are responsible for which obligations.
Mortgage concerns the transaction of real property, the definition of which may vary in every state. In the US, real property is defined as the land within a specified territory and every object attached to it such as infrastructure like buildings; wells and dams; and natural topographical features like ponds, lakes, and even trees. Real property also applies to estates with joint ownership of tenants like condominiums and patio homes.
Fixed rate mortgage (FRM) is the type of mortgage loan that demands the same interest rate throughout the amortization schedule. In an adjustable-rate mortgage (ARM), the interest rate may change according to fluctuations in the property's market value. An interest-only mortgage is sometimes practiced; here, the mortgagor only pays for the interest rate for a fraction of the amortization schedule. For example, if the amortization schedule lasts 30, only the interest is paid in the first 10 years.
There is mortgage insurance that helps mortgage lenders to get compensated from losses due to a default by the mortgagor. A default occurs when the debtor has not paid what is owed; this is similar to insolvency in bankruptcy law. Houston home mortgage insurance may protect the mortgage lenders from similar losses.