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.

Monday, May 12, 2008

1 new rule for home buyers

My wife can't keep a secret!!!

It’s written with large letters, but people don’t seem to be able to read it: The house you purchase today will more than likely be worth less next year (ouch).

That could get you thinking about trying to time your purchase with the bottom of the curve. Resist. It's harder to do than you think, and right now... is the best buyers have had it in two decades, with inventories up and mortgage rates low.

Pace yourself, find the perfect place and make a super hard bargain: Pay no attention to the seller's asking price and bid over 10% below what comparable properties are selling for. If the seller complains, just move on.

Remember that if you're selling too, your home could sit. So make sure you sell before you buy, home prices are et their lowest now.

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