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.

Tuesday, October 28, 2008

Sales of new homes make a small come back in the U.S.

Sales were at 464 000 units at an annual rate, according to initial estimates by the U.S. Department of Commerce published Monday.

Analysts were forecasting on an almost flat sales level, at 458 000 units. The poor figures in August were further revised downwards to 452 000 units, against an initial estimate of 460 000.

In a year, new home sales were down at 33.1% annualized in September. In seasonally adjusted data, 394 000 new homes were for sale at the end of September, representing 10.4 months of marketing at the rate of sales during the month (against 10.9 months in August).

The median sales price stood at U.S. $ 218 400, down 0.9% from the previous month and down 9.1% in one year.

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