Mortgage What, Why, When, and How?
What is a mortgage? Heres what The New Merriam Webster Dictionary definition is: a transfer of rights to a piece of property usu. as security for the payment of a loan or debt that becomes void when the debt is paid. Thats as plain and simple as it gets, you pledge the property that youre buying to the lender until your home loan is paid off then the mortgage is released and you own the property free and clear. The term Mortgage Loan usually pertains to the loan used to purchase a home.
Why and when would you need a mortgage loan? If youre going to enter into a real estate purchase transaction (land, residence, or commercial) and you dont have the funds available then chances are youll need a mortgage loan. In times when mortgage rates are low and return on your investments are high; you might consider a mortgage loan to pull the equity from your home to invest. If youre paying a higher mortgage rate than whats available on the market you might consider using a new mortgage loan to pay off your old mortgage loan therefore lowering the amount of time to pay off your home or lower your monthly mortgage payment. Maybe you need to take cash out of your home for reasons that are nobody elses business a new mortgage loan would be a great tool for accomplishing this.
How do you obtain a mortgage loan? This used to be a relatively difficult process but with todays technology is has become a pretty simple process. First find a mortgage consultant or lender that youre comfortable with (you might need to talk to two or three); that particular individual should be able to step you through the process of obtaining a mortgage loan without to much difficulty. The most difficult part of this is finding the type of mortgage loan that makes sense to you as there are several types available, read the fine print and make sure the mortgage loan you pick is right for your wants and needs.
Author Marc Sisk; Marc has been originating all types of mortgage loans since 1998. His web site's title is Mortgage Calculator | Refinancing Home Loan | Mortgage Lender. By being an affiliate branch of a large mortgage lender Marc is able to originate mortgage loans in most of the United States, visit his web page to see if we're licensed in your state.
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