Mortgage loan basics

The law on the basis of the Anglo-American owner when the owner (usually a simple collection of interest of brokers) promise to advance (property), interest, or any credit, mortgages. Credit (restrictions), and is therefore taxable in the possession of the type of cargo, but because most new mortgage credit loans, a mortgage, a condition action money has become the name of the type of property loans guaranteed by the deadlines. Other types of loans, mortgages, interest and in its time, usually on a regular basis for over 30 years. All types of tools, and the rate on the mortgage and usually reflects the risk to the lender.

The basic mechanism for financing private residential mortgage and commercial real estate (see commercial mortgages) are used in many countries. Although the forms and terminology varies from one country to another, usually the same essential elements:

Properties: physical habitat may be financed. Ownership of the land and the limit file types of loans are possible.
Mortgage: the security interests of the lender, real estate or selling assets may result in restrictions on the use. Insurance to pay the debt or payment arrangements for the sale of assets may have restrictions.
Borrower: the person borrowing property from the Properties window.
Lender: any lender, but usually a bank or other financial institution. The creditors may apply to the mortgage security mortgage investors. Such a situation is the best known of the primary creditor, such as a mortgage, author and sell loans to investors and pack. The payments will be collected on the client and is responsible for the loan.
Director: the original amount of the loan, which may or may not contain some of the other charges. to reduce the size of the subsidized capital.
Important notice: loads of money, financial creditors.
The closure or Withdrawal: the possibility that the lender can get lost, theft, or in certain circumstances the amount of the mortgage loan database, receipt of the goods without this aspect is probably different from other types of loans.

A number of other special characteristics, in many markets, but the most important properties. In many ways Governments regulate the mortgage, typically either directly (for example, legal requirements) or indirectly (for example, the regulation of financial markets, the banking sector or the participants) and often State (direct loans, the Government or the sponsoring bank owned by different people). Other aspects of a given mortgage market that may be regional, historical, or that the legal system and financial characteristics.

Mortgage loans are generally long-term loans, payments, similar to the repeating, and the principal amount of the money in the form of formula in a calculated value. The basic mechanism would require a fixed monthly payments-10-30 years, taking into account local circumstances. In this period the loan already paid (original loan) is the most important part of the slow depreciation. In practice, more opportunities and a common located anywhere in the world, and in every country.

Lenders to the property and the General command for yourself (for example, on the basis of deposits and bonds) the importance of the funds obtain. Ready money lenders price affect the cost of loans. Also, in many countries, creditors, mortgage and other parties who are interested in the cash flow received by the borrower, often the basic guarantees in the form of (case sensitive).

Mortgage loan amount for the invoice database should take into account the credit risk of mortgage (have), the probability that the return on investment (as the solvency margin, the General customers of pas characteristics); What happens if I open a creditor may exclude some or all of their initial capital and the return? Changes in interest rates and the risk of delays and financial, in certain circumstances.