What Is the Definition of a Mortgage?   Loans are used to purchase or maintain a home, land, or other types of real estate. Both parties agree that the borrower would pay the lender over some time, often in a series of regular installments divided into principal and interest. The loan is secured by the use of the property as collateral. An applicant for a mortgage must apply to their preferred lender and ensure that they meet several standards, including minimum credit ratings and down payments. Applications for mortgage loans must pass through a thorough underwriting process before proceeding to the closing stage. Mortgage types differ depending on the borrower’s demands and include conventional and fixed-rate loans, among others.   IMPORTANT TAKEAWAYS   ·         Mortgages are loans used to purchase real estates, such as houses and other types of property.   ·         It is the property itself that acts as security for the loan.   ·         Several different types of mortgages are available, including fixed-rate and adjustable-rate mortgages.   ·         The cost of a mortgage will vary depending on the type of loan, the length of the loan (for example, 30 years), and the interest rate charged […] read more