Understanding Mortgage Basics

As common as mortgages are, there are a surprisingly large number of us who are under false impressions about the way they function, and what they actually are. For one thing, though we do commonly call mortgages "home loans," this is not at all what they actually are. In fact, mortgages aren't loans at all, nor are they something that have been given to you by lenders. More accurately, it is a security instrument that you have provided to a lender. It is a document that protects your lender's interest with your property itself.

A mortgage functions in the following way:

- A mortgager (you) ? also referred to as a borrower (leading to the false impression that it is a home loan) and the mortgagee, who is also called the lender (again, falsely leading you to think that a loan has been lent).

- The mortgage document itself produces a lien on your property. This is the collateral ? the security ? for the mortgagee who has provided the security instrument. This lien is recorded within public records ? likely at a county courthouse or similar establishment.

- Ownership of the property is then yours and cannot be transferred to anyone else until you have paid off the amount required to reverse the lien.

- Even if your property is mortgaged, you still own the property wholly and completely. Nobody else, not even the mortgagee has title to the property.

- The only right that your mortgage gives to the mortgagee over your property is to sell it to recover funds in the case that you do not pay off your debt. This is the dreaded process referred to as foreclosure.

- Should the mortgage be used for security, then the foreclosure must progress through the court system in order to be legal in the majority of circumstances. This type of foreclosure is referred to as a judicial foreclosure.

Obviously there is much more to mortgages than this, but these are the basic foundations upon which the mortgaging system has been constructed.

Dave Gonzalez
http://www.lowest-rate-mortgage-finder.com/

---

What is an Offset Mortgage?

An offset mortgage is very similar to a current account... Read More

Mortgage Tips For The Frantic

It is a curious fact of human nature that people... Read More

How Much Interest is Your Home Equity Earning?

How much interest are you earning on your home equity?... Read More

Home Mortgages: Think Before You Borrow

In today's overheated housing market, lenders are making it easier... Read More

The Truth About Shopping for Mortgage Rates

With so much lender advertising focusing just on rates, you... Read More

How To Find A Mortgage With Bad Credit

Shopping online for mortgages ought to be trouble free, even... Read More

Home Equity Loan ? A Reverse Mortgage Could Provide a Comfortable Retirement!

While only comprising about 1% of all mortgages, the reverse... Read More

Poor Credit? Get a Sub-Prime Mortgage Now, and Refinance to a Conventional Mortgage Later

There are great mortgage loans for people with poor credit,... Read More

Choosing a Mortgage Lender

Just as there are many types of mortgages and mortgage... Read More

Mortgage Debt Elimination in 5 to 7 years!

Mortgage Debt Elimination shows that most home loan debts will... Read More

This Secret Weapon Will Eanble You To Close Up To 200% more Home Remodel Sales

Many Homeowners are not aware of all the options that... Read More

Financing a Home With Bad Credit

Financing a home with bad credit is a common problem... Read More

Understanding Fixed-rate Mortgages

A fixed-rate mortgage is a mortgage on which the interest... Read More

Internet & Mortgage Calculations

"You've been approved!" The words you have always wanted to... Read More

Home Construction Loans

You can maximize your savings by shopping for a lender... Read More

Where To Find The Best Rates For Your Mortgage?

As with all of my articles this will be based... Read More

5 Things In Selecting The Best Mortgage - You Should Know

Your goal is not only to find the best rates... Read More

Home Mortgages: Up, Up and Away!

Refinance NOW-before it's too lateIf you haven't found the time... Read More

What to Really Expect for Closing Costs

Closing on a property is a very challenging time for... Read More

6 Helpful Mortgage Tips

Here are some mortgage tips that can help you obtain... Read More

Remortgage Serves To Rewind The Reimbursements Of Mortgage

It takes a mighty big effort to secure a home... Read More

What Your Mortgage Lender Is Not Telling You About Accelerated Mortgages

For years, mainstream banks and financial advisors have been recommending... Read More

What is a Fixed Rate Mortgage?

As the term implies, with a fixed rate mortgage the... Read More

Fixed Rate Mortgage Loans - Understand the Pros and Cons of the Fixed Rate Mortgage

There are many benefits and drawbacks to consider when deciding... Read More

Unlock your Home Loan Piggy Bank

With the recent sharp increase in property values your current... Read More

Stop Foreclosure - 7 Tips to Save Your Home

Faced with the threat of a foreclosure on their home,... Read More

The Power of a Home Equity Loan to Pay Down Debt

Households across the country are finding themselves in a similar... Read More

Home Equity Loans Popular Scams

Most borrowers fail to realize that when trading their much... Read More

Guide to Interest Only Mortgages

Here is a useful guide to interest only mortgages. An... Read More

High Risk Home Mortgage Lenders Online

Online high risk home mortgage lenders specialize in offering loans... Read More

Home Loans For People With Poor Credit - Understanding The Requirements For a Subprime Mortgage

Home loans for people with poor credit demand that you... Read More

How easy is it to get a Commercial Mortgage in the UK?

As is the case when applying for any mortgage, be... Read More

Home Equity Loans - Are They Right For You?

The bills are out of control and you need a... Read More