Mortgage debt consolidating mortgage company
As with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time, typically 30 years.All types of real property can be, and usually are, secured with a mortgage and bear an interest rate that is supposed to reflect the lender's risk.According to Anglo-American property law, a mortgage occurs when an owner (usually of a fee simple interest in realty) pledges his or her interest (right to the property) as security or collateral for a loan.Therefore, a mortgage is an encumbrance (limitation) on the right to the property just as an easement would be, but because most mortgages occur as a condition for new loan money, the word mortgage has become the generic term for a loan secured by such real property.The lender's rights over the secured property take priority over the borrower's other creditors which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan.Few individuals have enough savings or liquid funds to enable them to purchase property outright.
The price at which the lenders borrow money therefore affects the cost of borrowing.
Once the mortgage application enters into the final steps, the loan application is moved to a Mortgage Underwriter.
The Underwriter verifies the financial information that the applicant has provided to the lender.
For mortgages in general and their legal structure, see Mortgage law.
For mortgage loans secured on ships, see Ship mortgage. A mortgage loan, or just mortgage, is used either by purchasers of real property to raise funds to buy real estate; or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged.