Mortgage, loan and property. What is a mortgage?

A mortgage is putting a property as a guarantee to a lender as a security for a mortgage loan.

While a mortgage in itself is not a liability or a dept, it is evidence of a debt. It is a transfer of an interest in property, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the property when the terms of the mortgage have been satisfied or concluded.

In other words, the mortgage is a guarantee for the loan that the lender makes to the borrower. In all but a very few states, a mortgage creates a lien on the title to the mortgaged property.

Thursday, February 14, 2008

Freddie Mac: Mortgage rates little changed

Mortgage rates were modestly changed this week as labor productivity rose higher than forecasted and pending existing home sales weakened.

30-year fixed-rate loans averaged 5.72%, up from 5.67% last week. While last year at this time, the 30-year rate was 6.30%, Freddie Mac said.

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