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 21, 2008

Mortgage rates: yoyo time again!

Fixed mortgage rates rise, adjustable rates fall: Long-term fixed mortgage rates are back to their January levels; average adjustable-rate mortgage rates are slightly lower than earlier this year, says Freddie Mac.

Adjustable-rate mortgages might become more popular as the difference between long-term fixed rates and adjustable rates raises, Freddie Mac reported Thursday.

"As the spread between long-term fixed-rates and adjustable-rates widens, it's possible we could see a slight increase in the popularity of adjustable-rate mortgages," said Freddie Mac (FRE, Fortune 500) vice president and chief economist Frank Nothaft in statement Thursday.

More information here…

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