December 25, 2020

Mortgage

Mortgage

  • also known as "liens against property" or "claims on property
  • Residential mortgage
    • Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire purchase price up front
    • A homebuyer pledges their house to the bank or other type of lender, which has a claim on the house should the homebuyer default on paying the mortgage. 
    • In the case of a foreclosure, the lender may evict the home's tenants and sell the house, using the income from the sale to clear the mortgage debt.
  • Mortgages come in many forms. 
    • The most popular mortgages are a 30-year fixed and a 15-year fixed.

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