The term "mortgage" at least once heard almost every person. However, not all until the end understand its value and the difference from the classical loan, incl. consumer.
Mortgage - the history of the emergence
The term "mortgage" is one of the few concepts that have passed through time and firmly settled in modern language, while maintaining their lexical importance. Mortgage as a type of property-cash relationship takes its beginning during the times of ancient Greece (approximately in the VI century. BC). Previously, if it is impossible to return a cash loan, the borrower himself switched to the ownership of the lender, becoming so slave.
The transition from personal dependence to the property marked the appearance of a mortgage. Now, if it is impossible to pay the loan, the lender to the ownership of the borrower crossed the lender. At the same time, a special pillar was installed on the site, which in Greek sounds like Hypotheka (Mortgage). The presence of the structure said that the ownership is pledged.
Mortgage - Definition of Concept
In the modern world, the concept of "mortgage" also characterizes the type of cash loan, the provision of which is pledge. Finance is most often provided by banking institutions. Real estate acts as collateral. That. Mortgage (or mortgage loan) is a type of loan, in which real estate is necessarily present.
Features of the mortgage loan
In modern society, the concept of "mortgage" or "mortgage loan" is often identified with a long-term target loan for the acquisition of real estate, in which the property acquired and is actually a pledge. This is not entirely true. This example is a special case of mortgage lending, but not an exhaustive option for this type of loan. Money loan can also be provided on:
- Payment of training.
- Acquisition of the car.
- Repayment of the cost of treatment.
- Acquisition of other goods and services.
The key point determining this type of money loan among other types of loans is the presence of a borrower as a collateral. If we are talking about the acquisition or construction of a house or apartment, the provision of funds provided by the Bank can act as acquired real estate and other immovable property of the borrower - residential building, apartment or room, garage or cottage, premises used for commercial activities.
If the period of insolvency of the borrower comes, the bank has the right to realize the laid property or arrange him in his property.
Parameters and mortgage time
Despite the difference in mortgages from other types of loan, this type of loan has a common feature with other types of lending. These include:
- Determination of the interest rate on the loan.
- Setting the term of lending.
- The size of the initial contribution is determined.
- Studies the type of loan payments - differentiated or annuity (equal amounts) payment.
As in the case of any other loan, when the mortgage is clearing, the rule works - the lower interest rate and shorter the payment period, the more profitable mortgage. When making a mortgage loan, 2 types of contract is issued - credit (cash loan) and mortgage (transfer of property secured).
The mortgage period is established individually (from several months), but does not exceed 30 years. Interest rates on this type of loan is most often lower than in the case of traditional (non-tax) lending. To obtain a positive mortgage solution, it is not enough to offer real estate as collateral. The borrower should also have sufficient income to repay a monthly payment (including interest on the loan), left no more than 40% of earnings. If there are negative credit history, the likelihood of refusal is also great.
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