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.

Wednesday, November 5, 2008

Lower spending in construction in the U.S.

Construction spending in the United States fell by 0.3% in September compared to August, falling to its July level.

These are the figures released Monday by the Department of Commerce.

This figure is less bad than feared analysts, who relied on a fall of 0.8%.

Moreover, changes in spending in August was revised upward to 0.3%, instead of the previously announced stability.

On a year, construction costs are down by 6.6% in September.

The private construction costs (71% of the total) were up 0.1% from the previous month, the decline in residential construction spending (-1.3% on a month, -27.1% yoy ) Being offset by higher costs non-residential construction, 1.2% over one month and 8% over a year.

Among the non-residential private construction, spending on commercial construction continued to decline (-2.9% on a month, -10.9% yoy), whereas offices are up (+1.7% on a months, 12.1% year on year).

The expenditure of public construction (29% of the total) were down in September by 1.3% over the previous month.

This figure is explained mainly by the drop in federal government spending, which fell 7% over one month, the state and local governments decreased by 0.8%.

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