Mortgage loan – a long-term targeted loan for the purchase of housing, which becomes a security for this loan. Also, the real estate owned by the borrower can be a pledge . For the first time the term “mortgage ” appeared in Greece at the beginning of the VI century. This was the name of the debtor’s liability to the creditor, when the land served as collateral.
The rates for fha mortgage
loans are lower than for other banking products, but also the requirements for future borrowers are higher: both to confirm incomes and work experience. Often, as one of the conditions for granting a loan, the bank puts forward a mortgage claim. Usually, there is one more requirement – the borrower’s initial payment, the amount of which varies from 10% to 30% of the purchase price, although there are programs on the market without a down payment, and with an initial contribution in the form of a parent’s capital.
Active players in the mortgage market are the largest banks – Sberbank, VTB 24, banks that specialize in this segment – Delta Credit, the Bank for Housing Financing, as well as credit organizations with western capital – Unaccredited Bank, Raiffeisenbank. A number of banks, leaders in the mortgage market, participate in AHML and government programs for issuing loans with lower interest rates.
A distinctive feature of a mortgage loan is a pledge: there is a pledge – there is a mortgage , no collateral – no mortgage
The term fha mortgage:
The term “Mortgage loan” means a loan issued on bail.
The main difference between a mortgage loan and a non- mortgage loan is a mortgage : that is, the availability of collateral. Moreover, a mortgage loan can be issued both on the security of the property owned by the borrower, and on the security of the acquired property (when the mortgage is formalized simultaneously with the acquisition of property).
To better understand the difference between a mortgage loan and a non- fha mortgage loan, I will give an example:
On the security of an existing apartment, the bank issues a loan, a “consumer loan,” which the borrower can use for anything.
Is it a mortgage or not a mortgage?
There is a mortgage – then there is a mortgage , and a loan is a mortgage.
Another example: the
Bank issued a loan for the purchase of real estate.
But the mortgage did not require this property. No collateral – no mortgage . And the loan is not a mortgage.
I would like to stress once again that a mortgage loan differs from a non-mortgage loan by having a mortgage.
Mortgages: a bit of history
The term ” fha mortgage” is of Greek origin.
Even in ancient Greece, you could get loans on bail, for example land. The borrower received money from the creditor ( mortgage loan ), and so that there was no temptation to get money on the security of the same land plot from other creditors, he was obliged to install a special sign (pillar or stone) on the plot encumbered with a mortgage. This sign informed that the given plot is in pledge, that under its pledge the mortgage loan has already been received.
What is the difference between ” fha mortgage and “pledge”
As already mentioned, the mortgage is a pledge. But not every mortgage is a mortgage . The fact is that a mortgage is a pledge that is public in nature. When real estate is mortgaged , the authorities that register transactions make corresponding records that the property is encumbered with collateral. Any interested person may request an extract from the State Register of Rights to Immovable Property and transactions with it. In this statement, if the property is mortgaged, it will be indicated that there is an encumbrance: a pledge.