The meaning (true definition) of "Mortgage"
A loan spanning a long term to finance a home
(purchase), refinance existing home or finance property. Loans are
originated by a mortgage broker, mortgage banker (online or
branch) or mortgage company. Lenders
improve their business by offering
low interest
rate mortgage, home loans.
ALSO: Read advice on
what to do when refinancing.
Mortgage
(Glossary of all
mortgage terms and phrases)
Home mortgage defined as follows: Mortgage is a
long-term loan which borrowers obtain by completing
an application (refinance
application) offered by a bank, thrift, wholesale
mortgage company, independent mortgage broker, online mortgage broker, lender or sometimes the
seller of real estate property. The finance
company holds claim to property until debt is paid off repaid (payoff).
These loans are bound by written agreement.
A borrower pays off mortgage over a 30
year fixed rate home loan term or 15 year mortgage payoff
period. Sometimes those who borrow will option for 20 year, 5 year or other
repayment term. The loan applicant pays incrementally (monthly
payments), because mortgage is a large sum of money.
Whether 1st mortgage, 2nd mortgage or refinance mortgage of current home, keep
in mind the following:
- Understand the market.
- Consider the current interest rates.
- Get more information mortgage
companies, lenders.
- Pre
qualify for a home loan
(purchase) for an amount predetermined (eligibility).
Origination with an online
mortgage company or bank branch loan
officer or broker is simple. Simply fill out online
application or apply in the local branch.
The funding comes from lender's funds and is generally serviced by the
lender, not the broker. Home buyers also work with mortgage
professionals, often called "mortgage broker". Brokerages seek best mortgage rate,
terms. Mortgage brokers bring borrowers and lenders
together and do not originate or service the loan.
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