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.

Thursday, May 21, 2009

The Fed lowered its growth forecast for 2009 and 2010

The U.S. Federal Reserve (Fed) announced a decline in its growth forecasts for the U.S. economy in 2009 and 2010.

Wednesday 20 May the Fed has lowered the GDP growth for the next three years, although a slight recovery is expected in the second half of 2009. For this year, it anticipates a reduction of between 2% and 1.3%, whereas in January it expected a decline of between 1.3% and 0.5%.

In 2010, the Fed sees GDP growth of 2% to 3%, and in 2011 from 3.5% to 4.8%. Slightly lower than those announced four months ago. The economic outlook of the members of the Monetary Policy Committee of the Fed (FOMC) meet the diagnosis of its chairman, Ben Bernanke. He foresaw a slow recovery in 2010, but a continuing rise in unemployment across the Atlantic.

The FOMC elaborates figures: the unemployment rate, currently 8.9%, the highest in twenty-five years could reach up to 9.6% in 2009 and still 8.5% in 2011, well over the long term goal of the Fed, between 4.8% and 5.0%. Regarding inflation, the Fed believes that it should be between 0.6% and 0.9% this year. Overall, "most" of the FOMC members believe that the economy should not be in line with its objectives of growth, unemployment and inflation in the long run for five or six years.