The mortgage in the U.S.
A mortgage is a loan that is made to finance the purchase of real estate, usually with specific payment periods and interest rates. The buyer (debtor mortgage) gives the lender (mortgagee) a right of arrest on property as collateral for the loan.
Original principal balance: The amount of money that the lender provides him or provide for their investment. Usually the money lender that provides as its capital will typically have a lower value than the value of the mortgaged property, so that if you fail to comply with the payments and proceeds to execute the respective mortgage, the money is raised from sale at an auction, is used to pay the debt.
Term: This is the time period set for the payment of debt. The debt is paid periodically, as agreed, usually in monthly payments, to cancel the remaining principal, interest accruing during the period and pay the surcharges in place.
Interest: It’s an additional amount you pay to whom he provides funds to borrow as a gain by using their money into investments like its own house.
The interest may be:
Fixed: A provisional extra annual rate, which varies during the period that was agreed to the cancellation of the loan.
Adjustable: All interest is an extra payment of a percentage on the value of the loan principal, but the adjustable interest is reviewed periodically to adjust the values to the conditions and current market movements.
A large majority of new mortgage loans were signed in the U.S. investments and hedge funds are what has seen great successes managing are of interest fixed for a period of 3 to 5 years and the remaining 27 or 25 years are variable. This is causing many missed mortgage involving
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