| Synchronize your brain with mortgage dictionary to | | | | Mortgagee is also called the lender. In the mortgage |
| understand the basic concepts of mortgage. | | | | contract, it states the lender who serves the right to |
| Everybody will finance a mortgage loan in some point | | | | repossess the real estate in the event of default. You |
| of life. In fact, a large percentage of the total household | | | | can also see the same information on the title of the |
| credit in North America constitutes residential | | | | property which is registered at the provincial |
| mortgage. Since purchasing a home is substantial | | | | government's land title office. |
| amount of money, Residential Mortgage is the most | | | | Term |
| common way to acquire a home. | | | | The lender usually sets up a 20 or 25 year |
| Mortgage Loan | | | | amortization period which is how long to repay the |
| The physical property holds and secures the loan. It is | | | | whole mortgage. The term of a mortgage divides the |
| a loan to finance the purchase of property, or real | | | | amortization period into several length of time. Most |
| estate in a specified period payment and interest rates. | | | | Mortgagees commonly offers 6 months to 5 year |
| The lenders serve the right to repossess the property | | | | term in fixed interest rates. |
| or real estate in case of default. | | | | First mortgage and Second mortgage |
| Face Value | | | | The first mortgage refers to the current mortgage, |
| The borrower promises to the pay the original principal | | | | while the second mortgage refers to the additional |
| amount which is the face value of the mortgage. | | | | mortgage. Financial institutions offer Home Equity |
| Mortgagor and Mortgagee | | | | Loans and Home Improvement Loans which are good |
| Mortgagor is also called the borrower or owner, while | | | | example of second mortgage. |