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

Home prices in biggest quarterly drop

Home prices continued their fall during the last three months of 2007, setting a real estate trade record for the biggest-ever quarterly drop.

The national median price went to $206,200 from $219,300, a drop of 5.8%. It was the steepest ever recorded by the National Association of Realtors (NAR), which has been compiling the report since 1979.

More information at CNNMoney.

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