What is a mortgage lien? A mortgage lien is a legal claim to your property, which serves ascollateral— or real security — for your mortgage. This means that if you default or stop making payments on your mortgage, thelienpermits the lender to take possession of and sell your home to ...
The idea is that if a consumer isn’t willing or able to honor the agreement, the lender can recoup some or all of their initial investment by taking the collateral (i.e. home, car) back and selling it. What’s in it for the Lender?
A mortgage is a type of secured loan that you as a borrower agree to take on to buy or refinance a home Your home is the security (collateral) for the mortgage. When you take out a mortgage, the lender takes a lien on your home Qualifying for a mortgage is based on eligibility crite...
A fixed rate mortgage is one where themonthly payments stay the samefor a set period of time, or even for the whole period of the loan. A variable-rate mortgage or adjustable-rate mortgage has an interest rate that fluctuates. Term Term– most mortgage loans have a maximum term, i.e. ...
Mortgage: A mortgage loan is a legal agreement between a bank, property owner, or anyone else who raises funds for either buying real estate or for any purpose against the worth of the property. Answer and Explanation: A mortgage is a loan taken against real estate property. A package mortg...
Ultimately, it’s best to know what a PPI plan offers beforehand and avoid being left in a financial bind when the unexpected happens. What is mortgage protection insurance? A mortgage protection insurance policy helps your loved ones pay your monthly mortgage payments if something happens to you...
Mortgage insurance premiums (MIPs)– There is a 2 percent initial MIP due at closing, as well as an annual MIP equal to 0.5 percent of the outstanding loan balance. The MIP can be financed into the loan. Origination fee– To process your HECM loan, lenders charge the greater of $2,500...
Does my mortgage have an alienation clause? To determine whether your mortgage contains an alienation clause, the first step is to carefully review your mortgage agreement. This document outlines all the terms and conditions of your loan, including any clauses related to the transfer of property ...
What is a reverse mortgage? A reverse mortgage is a loan that exchanges home equity for cash. Using a reverse mortgage, a homeowner borrows money based on the amount of equity they currently have and pays that amount back once the home is eventually sold. It’s called a “reverse” mort...
Maintenance that you are obligated to pay to an ex-spouse under a court order Any money owed to a creditor, whose debt is secured on your property (for example, a mortgage or secured loan). Struggling to work out what's best for you?