Mortgage

1. What is Mortgage
   A mortgage is a loan process where a real or personal property is used for the payment of the debt. The term ‘mortgage’ is connected to French law where the word means a death vow. In current law, the word is used to mean the debt secured by the mortgage. Mortgages are most commonly used for real estate loans.
     
2. What is a Joint Mortgage?
   A joint mortgage is a loan issued to two or more people as a group, rather than to one individual. As with regular mortgages, joint mortgages are secured with real property.
               
3. What is a Junior Mortgage
   A junior mortgage is a loan that is second priority for lean considerations than an earlier loan. A junior mortgage is also called a second mortgage. As the name suggests, the second mortgage is sanctioned after the first loan has been issued.
                 
4. What is a Long Term Mortgage                
   A mortgage is a loan plan arranged between a borrower and a lender such as a bank or property seller. The usual time period for the repayment of a mortgage is between 15 and 30 years. In the case of a long term mortgage, this period is extended up to 40 or 50 years.
             
5. What is a Mortgage Banker
   A mortgage banker is a financier- an individual or company- that issues mortgage loans directly to a borrower. Some mortgage bankers continue to directly deal with the borrower during the loan tenure while the majority of mortgage bankers sell the mortgages to a secondary mortgage company.
           
6. What is a Mortgage Bond
   A bond is an investment option that comes in the form of an IOU. The investor purchases the bond from a financial institution for a certain amount of money, which the financial institution returns after a certain period. While returning, a small interest amount is added to the original value of the bond.
          
7. What is Mortgage Interest
   Mortgage interest is simply the interest amount the borrower pays to the lender who holds the mortgage. This is done in equal monthly installments. The installments always include portions of principal and the interest. Principal is the amount of loan you get from the lender and interest is the amount the lender charges you to borrow the money.
             
8. What is Mortgage Payment Protection
   Mortgage payment protection is an insurance program that has developed in recent years in UK. People who pay less than 20% down payment on their loans are typically required to purchase this insurance to qualify for finances. The same insurance scheme is called mortgage insurance in US.
            
9. What are Private Mortgages
   A private mortgage is simply a mortgage arranged directly with a private individual, a seller or investor, against the common practice of mortgages being sanctioned by banks and financial institutions. Private mortgage arrangements may hold several advantages for everyone involved in the deal.
              
10. What is a Remortgage
    A remortgage is a procedure by which a borrower pays off an existing mortgage loan with a new mortgage loan from a different lender. In other words, the borrower replaces a mortgage loan with a new one. The borrower then has to repay only one mortgage loan to the new lender.
      
11. What is a Self Certification Mortgage                
    Self-certification mortgage is a mortgage scheme where it is possible for the borrower to declare how much they earn from employment. This scheme was introduced about ten years back to help small businesses and self-employed people who would not be able to produce the standard three years income proof that lenders routinely ask.
                     
12. What is an ARM Mortgage
    ARM mortgage is an acronym for adjustable rate mortgage. The interest rate of ARM mortgage is connected to an economic index. The interest rate and the payment installments are adjusted with the fluctuations in the index. The index is a standard lenders use to measure changes in interest rates.
                 
13. What is Mortgage Insurance
    Mortgage Insurance is an insurance policy that covers the lender’s risk from defaulting borrowers. Mortgage insurance is also known as Private Mortgage Insurance (PMI) or Lenders Mortgage Insurance (LMI). The lender purchases the policy to protect himself and passes on the premium to the borrower added on to the monthly mortgage payment.