Mortgages and Home Loans
A Mortgage is just like an agreement that works for a borrower to use the property as collateral to secure the loan. In most of the cases, we use the term as Home Loan in which if a person borrows to buy a home, then you have to sign an agreement by committing that if you don't make your required payment on the Loan your lender has the full rights to take any action against you. Keep in mind that the Bank can also take the property in foreclosure by forcing you to move out so that they can sell the Home.
We can use the term mortgage and Home Lending interchangeably But Technically a Mortgage is an agreement that can make you able to make your Home loan Possible and the agreement should be in writing like a document that gives your lender the right to foreclose on your Home. Types of Mortgages - There are several different types of mortgages that you can pick according to your situation.
If you want to get the simplest type of loan you can choose the fixed-rate mortgages and make the same payment for the entire term of your loan that would be also helpful for you to get rid of debt faster. There are also second mortgages known as Home equity loans that are specially designed for borrowing against a property you already own.
In the case of reverse mortgages, they provide the income to a homeowner having significant equity in their homes. With the help of a reverse mortgage, you don't have to pay the lender pays you but these types of loans should be your last choice because they are not always as good as they sound.