Usually when we talk about mortgages we ask our self some questions related with this term. There some places where you can get some answers and where you can consult specialists in this field.
First we must define the word mortgage and we can say that mortgage is a contract between two people a lender and a borrower. These two are using a property as collateral to ensure that loan. A mortgage refinance is a loan taken by a borrower in order to pay for another loan. This helps the borrower to pay lower interest rates or to get some cash. A home equity loan is a closed end home loan which is certainly secured by the property of the borrower. Home equity line of credit is an open end loan which is used to pay children education, home improvements or medical bills. The borrower can take a second mortgage loan after he takes the firs one, called of course second loan. A reverse loan is a contract between two parties which specifies the fact that the lender engages to pay to a homeowner regular amount of money for a period of time. The payment depends of the material good value and is a no-cost payment. The loaner recovers his loan by selling the property after the death of the owner. Mortgages lenders are usually bankers or brokers. The difference between them is the fact that brokers are intermediaries and they are the connection between lenders and borrowers. Mortgage bankers are the ones who finance the borrowers. Mortgage principle is the amount of money that a borrower receives aside the interest. Fixed rate mortgage is a loan with a constant interest rate which stills the same during the life of the loan. Adjustable rates mortgages are loans with fluctuating rates of interest based on a schedule. Truth in lending act is a law which engages the lender to offer to the borrower all the information about the loan. A listing agent is a person who works for a seller in order to find potential buyers. By the other side a selling agent is the one who has an agreement with to buyer in order to get the best interest in a transaction. Another terms related with mortgage are: dual agent, discount real agent, multiple listing service, opened listing agreement, safety clause, etc…
Mortgages FAQs are many and it is difficult for us to debate entirely this subject but is well to know at least a few mortgages terms.