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, June 3, 2009

Home buyer promises surge in April

The promises of purchasing a house in the United States surged in April, posting their third consecutive month of rising and rising well beyond expectations, according to figures released Tuesday by the National Association of Realtors (NAR).

The index increased by 6.7% compared to March, having already taken 3.2% the previous month and 2.0% in February, according to a news release.

Analysts projected a rise of only 0.5%.

Compared with April 2008, the index recorded an increase of 3.2%.

In January, the promises of purchasing a home had plummeted to their lowest level since the NAR calculates it since 2001.

"The implementation of a tax credit of 8,000 dollars for first-time buyers is starting to take effect on the market," said NAR economist, Lawrence Yun, cited in a statement.

"Since buyers must complete their purchase before November 30 to qualify for this credit, we anticipate an increasing activity in the coming months," he added.

If the market "seems to have already reached its lowest and begin its rebound in some regions," some other areas are stagnant or decline, however, tempers Mr. Yun.

The cost of housing (taking into account prices, interest rates and the purchasing power of households), calculated since 1970, increased by 1.7% in April, said the association.

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