Ryann Paul asked:




Many people used to call a home loan as a Mortgage. So let us see make a Comparison between mortgage and home loan

• Loan is the money which is borrowed by an individual, financial firm or the Bank to another individual or the small firm for a specific period and is due to be repaid with interest after a specific period. Home Loan is also a type of loan which is given to an individual who has to repay this amount with interest in a specific period. Most of the home loans are borrowed to an individual in the lieu of the guarantor, that individual provides to the bank. According to the international rules of banking the guarantor must be a person who is associated in some or the other way with the bank. Some banks even give the loan to a person based on the person’s (financial) reputation or the credit in the market.

• On other hand Mortgage is the security deposit which is taken from the borrower and which has the same face value as the loan which is paid to the borrower by the bank. Thus Mortgage is a type of legal document or a type of legal contract which protects the lender’s interests in the borrower’s property. For example tangible assets like the house or the car or the ornaments that posses the equivalent face-value as the amount of the loan are mortgaged. So even if the borrower fails to repay the loan after a specific period the lender could recover the loan amount selling the tangible assets of the borrower.

Thus we have seen the comparison between mortgage and home loan.

Now let us discuss about the types of Mortgage Companies which give loan to an individual as well as other firms.

Types of Mortgage Companies:

There are two types of Mortgage Companies mainly the Best Mortgage Companies and the Bad Credit Mortgage Companies.

• Best Mortgage Companies like Wells Fargo and Wachovia Mortgage companies are based in USA.

• Bad Credit Mortgage Companies like Synovus Financial and Golden West Financial Corporation which are also situated in the USA.

• Best mortgage companies are those Mortgage Companies which provide various types of loans and mortgages in the best possible way.

• Bad credit mortgage companies are those companies which give a loan to the borrower with a bad credit score (given by the credit system) against assets of the same value at high rate of interest.

We know that the rate of interest is charged on every loan amount. Loan Calculator is used to calculate this interest.

A Home Loan can be a small transaction which can consist of a less amount of money while Mortgage is an always a large transaction in which transaction amount is very high. This is the main point of comparison between mortgage and home loan.

A Home Loan is a transaction in which a friend or a relative gives money to another friend or relative with or without interest. This is not the case of Mortgage. This is an important comparison between mortgage and home loan.

Thus it is better to consult the loan consultant and take an advice from him as to which firms offer loans at the reasonable rate of interest and extended period.

Look before you leap. Think twice and act wise before applying for a home loan by mortgaging your belongings. Search for other avenues and options after making comparison between mortgage and home loan.

Marion

lizdavys asked:


I am being suited by Chase Mortgage Bank for a mortgage loan I did not make or signed. I am being told that a Judge can rule to make me sell my house without a legal binding contract.

Steven

Anthony Dean asked:


This article is hopefully going to explain many of the things people believe about mortgages that are actually false.The most important thing you must realize about a mortgage is that what you believe it to be is actually wrong. For one thing, although we commonly call them Mortgage home loans, this is not at all what they actually are; in fact, they aren’t loans at all, nor are they something that has been given to you by lenders. The mortgage is a legal contract between the mortgagor who is buying the property and the mortgagee, the person supplying the finance and security against the property. In fact, in reality, this isn’t the debt but the security required by the lender to protect their interests for the duration of the term.

A mortgage is used as a method by which individuals or businesses can purchase residential or commercial property without paying the full value upfront. There are also misconceptions about how they work so below is a description of how the process works. Being the financier, the mortgagee is the person who lends funds to the mortgagor or borrower. A security measure designed for purchasing properties, called a lien, is enforced until the mortgage is cleared at the end of the term.

This is the collateral or the security for the mortgagee who has provided the security instrument. Information about the lien is registered at a county courthouse, or similar, to ensure the contract is official and binding. The lien stays in force while the debt remains but the property is actually owned by the mortgagor. This is a strange situation where the mortgagor still owns the property even though the debt still remains to be paid.

This means the only occasion that can arise whereby the mortgagee can legally sell your home is if you stop making payments and it needs to be sold to repay the finance used to purchase it. In the unfortunate event that requires the property to be sold or Foreclosed, then the case will need to be presented to the courts for approval. The reason behind this process is to ensure the legal procedures have been followed and also why it is called Judicial Foreclosure. Obviously there is much more to the subject than this, but these are the basic foundations upon which the mortgaging system has been constructed.

Despite increasing numbers of the population having a mortgage, it is amazing how few people actually know what they are and how they work. A common misconception is that a Mortgage is a Home Loan but this is false and people need to be educated about the fact that it is not a loan at all. The mortgagor is the person who owes money to the mortgagee (the person who finances the deal) using a legal contract called a mortgage. Actually, it is in fact a legal document that is designed to ensure the lenders financial interests are secure.

The facility that a mortgage creates means individuals and companies can acquire land or property without needing the full face value to purchase it at the time. To help understand how this works, some important information is discussed here. Unfortunately it is our own common use of word like Borrower and Lender that has mislead people into thinking a mortgage is a loan when they should be referred to as Mortgagor and Mortgagee respectively. A lien is a means by which the mortgagor can purchase a home but it is the mortgagee that retains legal ownership until the arrangement between them has been completed (the debt is paid off).

This system works so successfully because the risk of loss on the part of the mortgagee is all but eliminated as they have legal possession of the property until the debt is completely repaid. This lien than becomes a matter of public record when it is registered at the county courthouse or equivalent. This act makes the purchase and the ownership of the house official and no-one can transfer this ownership until the debt is fully paid off. So how this works is that the mortgagor (you) owns the property completely even though the mortgagee has possession of the mortgage but not the title.

The only time the mortgagee has any rights over your property is in the event that you default on payments when he can sell it to recover the outstanding debt. This is the dreaded process referred to as foreclosure but if the property is used as security, then the foreclosure must go through the court system. This is done in order for it to be considered legal; this type of foreclosure is referred to as a judicial foreclosure. This is only a short introduction as the subject is much more complex but this information should make this important issue much clearer.



GARTH