A mortgage is the transfer of an interest in property (residential or commercial) to a lender as a security for a debt—normally, a loan of money that is needed in order to purchase the property. When the debt has been fully paid back, the mortgage is finished. There are various types of mortgage interest rates to fit the needs of different people depending on their financial situation and preferences. Aside from the initial monthly or weekly payments, mortgages include other fees for brokers and origination. They also include fees for private mortgage insurance costs, points, and closing costs. Often, lendees form lock agreements with lenders that will promise a particular interest rate and points fee for a specific amount of days.
Mortgages are regulated by various laws, such as the Truth in Lending Act. If a borrower does not follow the agreed terms of a mortgage, the lender may initialize the foreclosure process in order to seize the property.
Did you know?
If you are currently falling behind on your mortgage payments, it is imperative to seek the legal advice of a real estate attorney as soon as possible.
Failing to do so may result in your property being foreclosed on. Hiring a foreclosure lawyer can possibly delay this process, or in some cases, stop it completely.