Whats a mortgage?

Interesting Question?   (3)   (7)

Answers (1)

28th Nov 2009 by Tobias John Sterling

Strictly speaking, a 'mortgage' is not a type of loan, but rather an encumbrance placed on a piece of real property that is acting as security (that is, collateral) for a loan. However, in common parlance it's normal to use 'mortgage' to mean 'a loan to buy property which then acts as security for the loan.' The loan that is secured by the property is typically paid back in installments, often over a long period of time (such as 20 or 30 years). If a borrower defaults on making repayments on the loan, then the mortgage may give the lender the right to repossess the property and potentially sell it in order to recover the amount of the loan.

Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of

3rd Nov 2009 In Mortgage 1 Answers | 514 Views
Subjects: mortgage,

Answer This Question / Give Your Opinion
Whats a mortgage?

Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *

Give Your Opinion
What is a college loan?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What is a college loan?
Ask A Question
Get opinions on what you want to know:
Specific to any country?