|
|
Mortgage |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
MortgageThe name given to a loan used to buy a property.Mortgage(1) To hypothecate as security, real property for the payment of a debt. The borrower (mortgagor) retains possession and use of the property. (2) The instrument by which real estate is hypothecated as security for the repayment of a loan.MortgageA loan in which the borrower (the mortgagor) offers a property and land as security to the lender (the mortgagee) until the loan is repaid. Repayments of the loan are usually made on a monthly basis over a long period of time, typically 25 years. In the UK, the most common forms of mortgage are the repayment mortgage and the interest only mortgage.Similar MatchesRepayment mortgageRepayment mortgageA mortgage where throughout the term, regular payments (usually monthly) are made to partly repay interest on the capital and to partly repay the capital itself (the amount of the loan).Initially the largest proportion of the repayments will be used to pay interest since the capital amount outstanding is at its highest value. Therefore over the initial years the capital will not reduce very much. However as the years proceed more and more of the monthly repayments will be applied to reducing the capital until towards the end of the term the large proportion will be paying off capital and a small proportion paying interest.In the event that interest rates rise then often the monthly repayments will rise accordingly. Alternatively, to keep the same monthly repayments the term will need to be extended. If interest rates fall then the reverse applies. It is usually a requirement of the lender (that is, a building society or bank) providing the mortgage that the borrower takes out life assurance so that repayment is made in the event of his/her death during the term. Commercial Mortgage Backed SecuritiesCommercial Mortgage Backed SecuritiesSimilar to MBS but backed by loans secured with commercial rather than residential property. Commercial property includes multi-family, retail, office, etc., They are not standardized so there are a lot of details associated with structure, credit enhancement, diversification, etc., that need to be understood when valuing these instruments. Foreign currency mortgageForeign currency mortgageIt is possible to get a mortgage for your home in the UK in a mortgage denominated in a foreign currency. It sometimes gives you the opportunity to borrow money at a lower rate of interest than is possible in the UK. You do this by choosing a currency whose country has lower interest rates than we have here. Lower interest rates should mean lower repayments of both capital and interest or a shorter mortgage term. The mortgage does not have to be in any single currency. There are lenders who will allow you to spread your mortgage across a range of different currencies. This could be seen as spreading the risk Graduated Payment MortgageGraduated Payment MortgageA mortgage or deed or trust calling for increasingly higher payments over the term of the loan. This allows the buyer low beginning payments. The payments then increase as (theoretically) the buyer's earnings increase. Tracker mortgagesTracker mortgagesThey are usually linked to the Bank of England base rate, in that you pay a set margin above the current base rate level. Unlike many of the other types of rate, most tracker rates will not revert to the SVR at any point during the life of the loan. They will continue to track the base rate until you have either paid off your mortgage or switch provider or product. You can also get tracker mortgages that have discounts and stepped discounts built into them. Further SuggestionsBlanket MortgageCollateralized mortgage obligation (CMO) Capped rate mortgage Mortgage Insurance Freddie Mac (Federal Home Loan Mortgage Corporation) Bi weekly mortgage loan second mortgage Senior mortgage bond Repayment mortgage mortgagee Deferred interest mortgage Lehman Brothers Adjustable Rate Mortgage Index H Hard Money Mortgage Mortgage application fee mortgage interest deduction Mortgage arrears Remortgage Purchase money mortgage Federal Home Loan Mortgage Corporation (FHLMC) Euro mortgage Blanket Mortgage Real Estate Mortgage Investment Conduit (REMIC) Self build mortgage All inclusive Trust Deed (wrap around mortgage) Second Mortgage |
|
|
|