WORLD HISTORY

Detailed explanation-1: -A mortgage is a type of loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property then serves as collateral to secure the loan.

Detailed explanation-2: -Most people will go through these six steps: pre-approval, house shopping, mortgage application, loan processing, underwriting, and closing.

Detailed explanation-3: -What Is Repayment? Repayment is the act of paying back money previously borrowed from a lender. Typically, the return of funds happens through periodic payments, which include both principal and interest. The principal refers to the original sum of money borrowed in a loan.

Detailed explanation-4: -Mortgage loans are also commonly known as loans against property. A mortgage loan can be used to either buy or build a house or refinance a property. Refinancing refers to getting a new loan for a property while the original loan is still being repaid. It is usually done to get a loan with better terms.

Detailed explanation-5: -Mortgage dates back to the late 14th century, with the roots “mort” meaning death in French and “gage” meaning pledge. While that literally makes a mortgage a death pledge, it’s not as eerie as it sounds.

Detailed explanation-6: -A home loan is a means of buying a home when you don’t have the money yourself, while a mortgage is a means of guaranteeing a loan and protecting the lender from non-payment.