Mortgages generally refer to the method of taking loans on real or personal property as security for the payment of debt. Mortgage loans have to be paid over a specific period of time. Mortgages are usually connected with securing loans on real estate other than other types of properties. Nearly all banks and building societies lend mortgages. Apart from this, there are specialist mortgage lending companies that provide mortgage loans.

The main participants associated with mortgage loans are the creditors and borrowers. Creditors lend mortgage loans on secured property. Creditors are usually banks and other financial institutions. Creditors are also called mortgagees or lenders. Borrowers are otherwise called debtors, mortgagors or obligors. They take loans to purchase properties. Other participants include mortgage brokers or finance advisors and lawyers or solicitors. Solicitors are required if the main participants need a legal representation. Mortgage brokers help obtain mortgage loans.

Mortgage Company, some call as company mortgage, is a firm that makes mortgage loans. The main business of a mortgage company is the origination and servicing of mortgage loans. These mortgages are sold to investors. Also, mortgage companies acts as mortgage agents for other big mortgagees. As mortgage agents, mortgage companies carry out jobs such as payment collection, maintaining records, making remittances etc.

Different types of mortgages are offered. Before you settle on a mortgage make sure that you know the advantages and disadvantages of different mortgages. Make certain you have enough information about different mortgages. Also double-check the rates, fees and points of the mortgage loans since different lenders offer different rates and fees. Compare different mortgage loans to know such variations.

There are different ways to pay off your mortgage loan. The most common way of repaying the loan is known as amortization. By amortization, you cover the principal and interest by making monthly payments. ‘Interest only’ mortgages are also there.

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