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.

Saturday, May 31, 2008

U.S. housing surprises everyone in April

Sales of new homes rose by 3.3% in April compared to March the U.S., reaching an annual rat of 526,000 units, announced Tuesday the Department of Commerce.

Analysts were expecting 520,000 sales.

The numbers for March, however, were revised down to 509,000 sales, which is the lowest level since April 1991, instead of 526,000 initially announced.

In only one year, decreased sales of new homes has reached 42.2%.

This report was published four days after the home resale one. Home resales fell by 1% in April.

On the new housing market side, the median price rose by 1.5% in April (over one year) to reach $246,100.

Compared with March, prices rose by 9.1%.

The number of new homes for sale fell by 2.4% in April to reach 456,000, which represents the equivalent of a stock of 10.6 months of homes to sell at the pace April sales (against 11.1 the previous month).

The increase in sales in March is due in part by a jump of 41.7% of activity in the north-east, and by increases of 8.3% in the west and 5.8% in Central (Midwest). However a decrease of 2.4% was registered in the south.

Finally, the Case-Shiller index measuring property prices in the 20 largest U.S. cities went down 14.4% in the first quarter of this year compared to the same period in 2007. In the 10 major urban areas of the country, the decline has reached 15.3%.

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