BNET Business Dictionary
Business Definition for: Mortgage
- a financial lending arrangement whereby an individual borrows money from a bank or another lending institution in order to buy property or land. The original amount borrowed, the principal, is then repaid with interest to the lender over a fixed number of years.
- a borrowing arrangement whereby the lender is granted a legal right to an asset, usually a piece of real estate, should the borrower default on the payments. Mortgages are usually taken out by individuals who wish to secure a long-term loan to buy a home.
- See also Amortized Mortgage
Wiktionary Definition for: Mortgage
- A special form of secured loan where the purpose of the loan must be specified to the lender, to purchase assets that must be fixed (not movable) property such as a house or piece of farm land. The assets are registered as the legal property of the borrower but the lender can seize them and dispose of them if they are not satisfied with the manner in which the repayment of the loan is conducted by the borrower. Once the loan is fully repaid, the lender loses this right of seizure and the assets are then deemed to be unencumbered.
- As in "to morgtage a property", to borrow against a property, to obtain a loan for another purpose by giving away the right of seizure to the lender over a fixed property such as a house or piece of land.
Additional Resources
- Mortgage
- A mortgage is the pledging of a property to a lender as a security for a mortgage loan. While a mortgage in itself is not a debt, it is evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on...
- Tools & templates 2007-12-01
- Assignment of Mortgage
- This is a template for assignment of mortgage. The Assignor transfers all of its right, title and interest in and to the mortgage including the debt and promissory note secured by the mortgage to the assignee, and warrants that no other party holds an interest in the mortgage. The form...
- Tools & templates 2007-12-01
- Refinance After Bankruptcy
- Refinancing mortgage after bankruptcy is actually the same as replacing it with an entirely new mortgage. The most common reason for refinancing a person's mortgage after bankruptcy is to get a lower interest rate and save money over the length of the mortgage. It is possible for the person to...
- White papers
- Mortgage Securities
- Mortgage securities represent an ownership interest in mortgage loans made by financial institutions savings and loans, commercial banks or mortgage companies to finance the borrower’s purchase of a home or other real estate. Mortgage securities are created when these loans are packaged, or “pooled,” by issuers or services for sale...
- White papers 2003-01-01
- Real Estate: Mortgage Options for Retirees
- The article is about the Mortgage options plans for retirees. In recent years, many financial planners have decided that mortgage rates are sufficiently low to justify leaving it in place and investing the proceeds elsewhere. This is the best option for many retirees; however, for others, the advantages of a...
- White papers 2001-11-01
- So, How Much Will My Mortgage Cost?
- This article discusses the three major mortgage cost groups in obtaining a mortgage: closing costs, "points", and note rate. As well as the loopholes regarding adjustable rate mortgages. Discovering, and managing the cost of a new mortgage presents unique challenges to the home buyer. Review of government-mandated mortgage loan disclosure...
- White papers 2003-01-01
- Fixed Rate Mortgage Vs. Interest Only Mortgage
- A fixed rate mortgage has the same payment for the entire term of the loan. Use this tool to compare a fixed rate mortgage to interest only mortgage.
- Tools & templates 2008-01-01
- Credit Scoring And Mortgage Securitization : Implications For Mortgage Rates And Credit Availability
- This paper develops a model of the interactions between borrowers, originators, and a securitizer in primary and secondary mortgage markets. In the secondary market, the securitizer adds liquidity and plays a strategic game with mortgage originators. The securitizer sets the price at which it will purchase mortgages and the credit-score...
- White papers 2000-12-21
- Comprehensive Mortgage Calculator
- The loan amount, the interest rate, and the term of the mortgage can have a dramatic effect on the total amount you will eventually pay for the property. Further, mortgage payments typically will include monthly allocations of property taxes, hazard insurance, and if applicable Private Mortgage Insurance PMI. See the...
- Tools & templates 2008-01-01
- Mortgage Originator
- The Mortgage Orginator job description template includes the following job summary: To originate permanent residential mortgage loans and to participate in activities to increase the bank's share of the local mortgage market. Additional information available includes essential job functions, additional responsibilities, and education and experience requirements.
- Tools & templates 2007-09-09
- The Effects of Purchases of Mortgages and Securitization
- "With total assets of several hundred billion dollars, the Federal National Mortgage Association Fannie Mae and the Federal Home Loan Mortgage Association Freddie Mac are significant participants in home mortgage markets. A question which arises is that what measurable effects do these two government-sponsored enterprises GSEs have on mortgage markets?...
- White papers 2003-01-01
- Mortgage Consolidation & Refinancing Calculator
- This tool will help you to decide whether or not it would be advantageous for you to refinance either a single mortgage, or the consolidation of a first and second mortgage, into a single mortgage. Not only will this tool calculate the monthly payment and net interest savings if applicable,...
- Tools & templates 2008-01-01
- Balloon Mortgage Note
- A balloon payment mortgage is a mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is called a balloon payment because of its large size. Balloon payment mortgages are more common in commercial real estate than in...
- Tools & templates 2007-12-01
- How Much Will A New Mortgage Reduce My Taxes?
- This calculator shows the average yearly tax savings on a mortgage loan and calculates the after-tax interest rate on the loan. Loan closing costs, including mortgage points, are amortized over the term of the loan. Tax savings on a mortgage loan increase at higher income tax rates, all else remaining...
- Tools & templates 2008-01-01
- Bi-Weekly Payments For An Existing Mortgage
- This tool shows you possible savings by using an accelerated bi-weekly mortgage payment. By paying ½ your monthly payment every two weeks, each year your mortgage company will receive the equivalent of 13 monthly payments instead of 12. This simple technique can shave years off your mortgage and save you...
- Tools & templates 2008-01-01
- Managing Your Credit Wisely Improves Your Chances for a Good Mortgage
- Whether you’re a first-time buyer or a seasoned homeowner looking to move up to a bigger or better house, how you have managed your consumer credit rating can have a real impact on both the amount and terms of your next mortgage. The article says that contrary to popular belief,...
- White papers 2003-01-01
- Balloon Mortgages
- A balloon mortgage can be an excellent option for many home buyers. A balloon mortgage is usually rather short, with a term of five to seven years, but the payment is based on a term of 30 years. They often have a lower interest rate, and can be easier to...
- Tools & templates 2008-01-01
- 2nd Mortgage Loan After Bankruptcy - Get Approved Online
- A 2nd mortgage loan after a bankruptcy is possible in as little as two years. Refinancing the mortgage can help a person to make needed home improvements or pay off high interest debt. Refinancing with adverse credit history requires savvy shopping on a person's part to ensure that he or...
- White papers
- Mortgage Payoff
- How much interest can you save by increasing your mortgage payment? This financial calculator helps you find out. This tool shows a complete amortization payment schedule, and how much you can save on your mortgage.
- Tools & templates 2008-01-01
- Spatial Heterogeneity in Mortgage Terminations by Refinance, Sale and Default
- This paper investigates the impact of spatially correlated unobservable variables on the refinancing, selling, and default decisions of mortgage borrowers. Virtually the entire mortgage literature acknowledges that borrower specific characteristics, such as culture, education, or access to information, play an important role in the mortgage termination decisions. While we do...
- White papers 2003-01-01
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