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In a mortgage transaction, a borrower is commonly referred to as the "mortgagor." This individual or entity takes out a loan to purchase property and pledges the property as collateral for the loan. The lender, in this case, is known as the "mortgagee." The mortgagor is responsible for repaying the loan according to the agreed-upon terms.
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A borrower in a mortgage transaction is called?
mortgagor
What is the purpose of escrow mortgage insurance and how does it protect both the lender and the borrower in a real estate transaction?
Escrow mortgage insurance protects both the lender and the borrower in a real estate transaction by ensuring that property taxes and homeowners insurance are paid on time. This reduces the risk for the lender of the property being uninsured or facing tax liens, and also helps the borrower by spreading out these costs over the year.
What is the meaning of an offset loan and how does it work?
An offset loan is a type of mortgage where the borrower's savings or transaction account is linked to their home loan. The balance in the savings account is offset against the outstanding loan amount, reducing the interest payable on the mortgage. This can help the borrower pay off their loan faster and save on interest costs.
Who generally benefits from a loan transaction?
The Borrower
What does the term bad debt mortgage mean?
The term 'bad debt mortgage' implies that the borrower has applied for a mortgage and been accepted. However, the borrower has then defaulted on his mortgage payments and it is considered that they are unlikely to be able to repay the loan.
A borrower in a mortgage transaction is called?
mortgagor
What is a cognovit note?
It is a combination of promissory note and chattel mortgage according to which the borrower waives his right of action to the chattel mortgage in the event of failure to pay the sum agreed in the transaction.
What is the purpose of escrow mortgage insurance and how does it protect both the lender and the borrower in a real estate transaction?
Escrow mortgage insurance protects both the lender and the borrower in a real estate transaction by ensuring that property taxes and homeowners insurance are paid on time. This reduces the risk for the lender of the property being uninsured or facing tax liens, and also helps the borrower by spreading out these costs over the year.
Can a mortgage borrower apply for court foreclosure?
No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.
Who is the mortgagor and who is the guarantor?
The mortgagor is the primary borrower on the mortgage- the party who purchased the real estate. The guarantor is the co-signer on the mortgage loan. The co-signer guarantees they will pay the debt if the primary borrower defaults.
What rights and responsibilities does the first mortgagee have in a property transaction?
The first mortgagee in a property transaction has the right to foreclose on the property if the borrower fails to make mortgage payments. They also have the responsibility to ensure the property is properly maintained and insured.
How can a cosigner be completely removed from a mortgage?
The mortgage must be paid off and refinanced in a single borrower's name if necessary.The mortgage must be paid off and refinanced in a single borrower's name if necessary.The mortgage must be paid off and refinanced in a single borrower's name if necessary.The mortgage must be paid off and refinanced in a single borrower's name if necessary.
What is the meaning of an offset loan and how does it work?
An offset loan is a type of mortgage where the borrower's savings or transaction account is linked to their home loan. The balance in the savings account is offset against the outstanding loan amount, reducing the interest payable on the mortgage. This can help the borrower pay off their loan faster and save on interest costs.
Who generally benefits from a loan transaction?
The Borrower
What is a yield spread in mortgage transaction?
what is a yield on a mortgage
What does the term bad debt mortgage mean?
The term 'bad debt mortgage' implies that the borrower has applied for a mortgage and been accepted. However, the borrower has then defaulted on his mortgage payments and it is considered that they are unlikely to be able to repay the loan.
What is the maximum percentage of a borrower's income that can be used to make the monthly mortgage payment called?
Debt to income ratio
