Using your real or personal property as security you can secure loans or mortgages. Today mortgage loans are commonly secured on real estate. Without paying the full amount immediately people can purchase home or real estate arranging mortgage loans. In countries like U K and U S where there is very high demand for home ownership, there are domestic markets for mortgages.

The creditor and debtor are the main participants involved in a mortgage loan. In most cases creditors are banks, insurers or financial institutions that offer mortgages. Debtors are mostly homeowners or businesses who take mortgage loans to meet their requirements. Sometimes other participants such as mortgage brokers and lawyers are also involved in a deal.

Various mortgage loans are available in the market. Hence it is advisable to have enough information before you settle on a particular loan. You must verify the mortgage rates, points and fees since these may vary from lender to lender. You can find different interest mortgage rate options such as fixed rates and variable rates.

In fixed rate loans, as the term suggests, the interest rate is fixed. For the duration of the loan the interest rate remains fixed. In the U S, term of mortgage loans is usually two, three, four, five or ten years. In case of variable rate loans, the debtor needs to pay the going rate on the mortgage. The mortgage rates changes as the interest rates changes. Some other types of mortgage rates are capped rates, cash back deals and discounted rates.