0
A mortgage is granted to a lender by the owner of real property in conjunction with a loan. The owner must grant a security interest in real property to the lender. A note that sets out the terms for the loan is executed at the same time. The mortgage must be recorded in the land records and then constitutes a lien on the real estate until it is discharged. It will take priority over any liens that are subsequently recorded.
If the mortgage is not paid the lender can take possession of the real estate by foreclosure. Therefore, from the perspective of the lender the purpose of a mortgage is to grant the lender a security interest in the real estate so that it can take possession if the loan isn't paid.
From the borrower's perspective, a mortgage can be used to purchase and improve real estate. It can also be used for any other purpose for which the property owner is willing to encumber their real property by using it as collateral.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Do you still have to pay monthly mortgage if you have a reverse mortgage?
No, the purpose of a reverse mortgage mortgage is to eliminate mortgage payments permanently.
What is meant by 'pre-issuance' in regards to mortgage insurance?
What is the purpose and and benefits of per mortgage insurance
What is the purpose of an interest only mortgage calculator?
The purpose is to help determine the amortization schedule would be for an interest only mortgage. It also helps determine how principal payments made to reduce the mortgage balance will affect the schedule.
What is the purpose of mortgage protection life insurance?
The purpose of mortgage protection life insurance is to protect the home from being lost in the event the mortgagee passes away. The life insurance will pay off the balance of the existing mortgage to the finance company.
What is the purpose of commercial mortgage backed securities?
The purpose of commercial mortgage backed securities is to take out loans using commercial mortgage properties as a form of collateral. You can learn more about this at the Wikipedia. Once on the website, type "Commercial mortgage backed security" into the search field at the top of the page and press enter to bring up the information.
What is the purpose of a mortgage calculator?
There are many reasons that one might use a mortgage calculator when looking for a mortgage loan. The main purpose of a mortgage calculator is to determine the worth of a mortgage loan.
Do you still have to pay monthly mortgage if you have a reverse mortgage?
No, the purpose of a reverse mortgage mortgage is to eliminate mortgage payments permanently.
What is meant by 'pre-issuance' in regards to mortgage insurance?
What is the purpose and and benefits of per mortgage insurance
What is the purpose of live mortgage leads?
The purpose of live mortgage leads is to connect interested mortgage leads to a ready lender. All this can take place on the phone. The caller can be transferred to the preferred loan officer within minutes.
What is the purpose of an interest only mortgage calculator?
The purpose is to help determine the amortization schedule would be for an interest only mortgage. It also helps determine how principal payments made to reduce the mortgage balance will affect the schedule.
What is the purpose of mortgage protection life insurance?
The purpose of mortgage protection life insurance is to protect the home from being lost in the event the mortgagee passes away. The life insurance will pay off the balance of the existing mortgage to the finance company.
What are the purposes of a Mortgage Affiliate Program?
The purpose of a Mortgage Affiliate Program is to help bloggers and website owners make money through mortgage loans. It helps to educate people about mortgage loans.
What is the purpose of mortgage loans?
A mortgage loan is obtained when one is purchasing a house. In return for using the value of the house as collateral, a mortgage company will provide a loan for the remaining balance.
What is the purpose of commercial mortgage backed securities?
The purpose of commercial mortgage backed securities is to take out loans using commercial mortgage properties as a form of collateral. You can learn more about this at the Wikipedia. Once on the website, type "Commercial mortgage backed security" into the search field at the top of the page and press enter to bring up the information.
What is the purpose of second mortgage calculator?
A second mortgage calculator is a tool used to help borrowers determine how much they may be able to borrow for their second home loan. It helps them estimate the loan payments and other associated costs, allowing them to better plan for their financial future.
What is the function of A mortgage bank?
Mortgage lenders provide loans for the purpose of buying real property both with and without existing structures and dwellings.
What is the purpose of mortgage alliance?
A mortgage alliance is an alliance which will help you to pay your mortgage, in most cases by having a money buffer. They will help you in times you cannot pay it to make it possible to delay the payment.
