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Make Sure You Know Your Mortgages!


What is a Mortgage?

A mortgage is a loan that is granted by a financial institution to an entity interested in the attainment of a piece of real property whose market value exceeds the value in possession of that entity. Mortgage loans are granted upon the review of applications submitted by individuals or entities interested in the receipt of a mortgage loan. Subsequent to the approval of a mortgage loan, the conditions, details, and repayment process with be expressed within the mortgage agreement submitted to the individual applicant. Typically, the repayment procedure with regard to mortgage loans payments are expected on a scheduled, monthly basis. Mortgage loans are available with regard to a wide variety of property, including residential, commercial, municipal, federal, and industrial.

Types of Mortgages

The following are some examples of the most common varieties of mortgages available for individual applicants interested in the attainment of real property:

Bad Credit Mortgage: A Bad Credit Mortgage is a type of mortgage loan that is available to individual applicants whose credit score(s) – or financial history - may normally have prevented them from being eligible for the receipt of a mortgage loan

Reverse Mortgage: A Reverse Mortgage is classified as a type of mortgage loan that is available to individual applicantslegally-classified as senior citizens who have reached the legal age of retirement; typically, the conditions surrounding the approval of a reverse mortgages is contingent upon the equity belonging to that individual

Fixed-Rate Mortgage: A fixed-rate mortgage is a mortgageloan that is available to individual applicantsin which interest rate expressed within the terms of the mortgage agreement is unchangeable throughout the life of the mortgage

Self-Certified Mortgage: A self-certified mortgage is a mortgageloan that is available to individual applicants, which permits borrower to present their respective financial records, statements, and historywith the hopes of optimizing mortgage rates

Second Mortgage: A Second Mortgage is a supplemental mortgageloan that is available to individual applicants with regard to real property for which a preexisting mortgage loan was awarded Remortgage: Remortgaging is a financial procedure that involves the replacement – or exchange - of a preexisting mortgage loan with a third-party lenderproviding new mortgage rates and terms

Mortgage Instruments

The following legal and financial instruments may be available for both individual applicants, as well as for lending financial institutions:

• Mortgage Insurance is a type of insurance policy that is allowed to financial institutions acting as mortgage lenders that protects them from the potential of an individual borrower to satisfy the expected mortgage payment(s)

• Mortgage Quotes may be determined by a variety of factors including an individual applicant’s financial state, solvency, solubility, evaluation of assets, and the condition of the property in question

• Annual Percentage Rate (APR)

• Interest Rates - both or fixed or variable

• Mortgage Calculators are a financial tool that utilize algorithms in order to determine – through estimation – the terms of a mortgage loan, with regard to the interest, gross amount of the mortgage loan, repayment, and interest

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