Mortgage is a loan taken to purchase a property. You can avail mortgage on real property or personal property as security for the payment of debt. Such loans have to be repaid over a definite period of time. Usually, mortgage loans are secured on real estate. Most of the banks and building societies as well as specialist mortgage lending companies offer mortgages. Mortgage refinance is also available to pay off an old loan with a new one.

The main participants associated with mortgage loans are the creditors and debtors. Creditors are those who lend mortgages on secured property. Creditors are mostly banks and other financial institutions. Creditors are also known as lenders or mortgagees. Borrowers are known as debtors, also referred to as mortgagors or obligors. Debtors take loans to buy property. Other participants include solicitors and mortgage brokers. Solicitors or lawyers are required when the main participants need a legal representation. Mortgage brokers or finance advisors help get mortgages.

Before you choose a mortgage make sure that you have enough information regarding different mortgages. Because there can be risk involved in mortgages. Also make certain the rates, fees and points of the mortgage since there are differences in rates, fees and points offered by different lenders. Compare different mortgages to understand such variations. Before you go for a particular mortgage, know the advantages and disadvantages of the mortgage.

Mortgage refinancing is the process of getting a new mortgage loan to replace an existing loan with a new one. People usually tend to refinance a mortgage in order to get a low interest rate, to lower the duration of the existing loan payment, to switch to a fixed loan rate or to liquidate their equity in to cash. Refinancing a mortgage involves the same costs as a mortgage, so that must be considered before you refinance a mortgage.

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