Welcome to Mortgage Guide
Home Equity Mortgage Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Basic Mortgage Loan Information
from:Many professionals take the information that they have at their fingertips for granted. Consumers may require some basic information about a mortgage loan before making any rash decisions. Simply providing a clear definition and outlining the participants can help potential homebuyers make the most of their experience.
What is a mortgage loan? This question is not often asked by consumers. However, some homebuyers may not have a full understanding of this type of debt. Professionals in the field often forget that the consumers are not as well informed as they should be.
Mortgage Loan Basics
A mortgage is a type of loan that uses property to secure the debt. This property does not have to be a home in the fundamental meaning of a mortgage. Traditionally, the term was used to refer to various items bought with credit including ships and jewelry. The term basically referred to using collateral to assure that the debt would be paid in a timely manner.
The word comes from the French, meaning “dead pledge.” This somber definition conveys the seriousness of the promise and it also has some legal undertones as well. A mortgage loan is a legal contract that uses the property in question as collateral.
Today, the mortgage loan is strongly tied to residential and commercial real estate property. In a nutshell, consumers can reside in a home or conduct business in a building without paying for the real estate up front. The mortgage loan is used to provide instant access with the requirement of timely payments.
The Participants
Of course, a mortgage loan is not a solitary venture. There are various participants in the process. One of the most important contributors is the creditor. The creditor, or lender, maintains legal rights to the money owed for the property.
Basically, the creditor owns the mortgage and has right to the property if the debt is not paid as agreed. Banks and other lending institutions are typical lenders that make funds available for consumers so they can purchase property. These organizations are also known as the mortgagee, lender or beneficiary.
In contrast, the debtor is the individual borrowing the funds to pay for the property. This individual is required to make installment payments in order to pay off the mortgage loan within a specified period of time. After the debt is paid in full, the debtor becomes the owner.
Failure to hold up to the obligation may result in foreclosure. The creditor owns the mortgage until it is paid in full. The homebuyer may revoke his right to the property if he fails to keep his end of the bargain. The debtor is also expected to pay interest on the loan, making the venture profitable for lender.
A mortgage agreement is a complex exchange that is legally binding. Legal representation is often necessary in the process as well. Other participants can include mortgage brokers and financial advisors. Each individual has an important role in the proper development of a mortgage loan.
Home Equity Mortgage News
Negative Equity More Widespread Than Previously Thought, Report Says - Wall Street Journal (blog)
 Sun-Sentinel (blog) | Negative Equity More Widespread Than Previously Thought, Report Says Wall Street Journal (blog) Today, it rolls out its new negative equity report, which shows, among other things, that nearly 16 million US homeowners, or 31.4% of all homeowners with a mortgage, were under water in 2012. They owe $1.2 trillion more than the value of their homes. 44% of Cook County homes with a mortgage are underwater More than 30% of mortgage borrowers still underwater Half of metro Atlanta mortgagees underwater |
Beware the home-equity loan - Gettysburg Times
Beware the home-equity loan Gettysburg Times One in five American homeowners is underwater, owing more on a mortgage than the home is worth. That led to mortgage defaults and record numbers of foreclosures. It began with credit cards. Once you start running a credit-card balance, a home-equity ... |
Fitch Ratings: Mortgage-Fueled Debt Raises Canadian Lenders' Risks - Mortgageorb
 Globe and Mail | Fitch Ratings: Mortgage-Fueled Debt Raises Canadian Lenders' Risks Mortgageorb 31, the six largest Canadian banks had $912 billion of exposure to the domestic residential mortgage market through $730 billion in residential mortgages and $182 billion in home equity lines of credit (HELOCs). Fitch Ratings used a single-factor ... No real estate bubble pop expected in Canada |
Bankruptcy Judge Gives ResCap Approval To Stop Funding HELOCs - Fox Business
Bankruptcy Judge Gives ResCap Approval To Stop Funding HELOCs Fox Business ResCap, once one of the largest subprime mortgage lenders, will continue honoring draws on certain home-equity lines that are originated and held by Ally Bank, Ally's banking subsidiary, Wednesday's filing said. A spokeswoman for ResCap said the ... |
Wells Fargo to hold mortgage assistance event in Dallas - Bizjournals.com (blog)
 The Republic | Wells Fargo to hold mortgage assistance event in Dallas Bizjournals.com (blog) The event will be from 9 am to 7 pm at the Hyatt Regency Dallas, 300 Reunion Blvd. The workshop is for customers of Wells Fargo Home Mortgage, Wells Fargo Financial, and Wells Fargo Home Equity who are facing financial hardships. Wells Fargo Execs Boast Of Stability, Less Risk Wells Fargo Doubles Down on Mutual Funds as Rivals Wither |