What is a mortgage quizlet?

mortgage. a loan for the purpose of buying property, usually paid in payments of principal (amount borrowed) and interest over a period of from 15 to 30 years. equity. the difference between what a house (or property) is worth, and what is owed on the mortgage. You just studied 30 terms!

What is a mortgage easy definition?

A simple definition of a mortgage is a type of loan you can use to buy or refinance a home. Mortgages are also referred to as “mortgage loans.” Mortgages are a way to buy a home without having all the cash upfront.

Who owns a mortgage quizlet?

Terms in this set (33) deed that transfers property to trustee for benefit of creditor. Some states interpret a mortgage to mean the lender is the owner of mortgaged land. Upon full payment of the mortgage debt, the borrower becomes the landowner.

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What is the purpose of a mortgage quizlet?

What is the function of a mortgage? It secures the repayment of the debt. When financing the purchase of real estate, what is the role of the mortgagor? The mortgagor gives a mortgage to a mortgagee.

Who is the mortgagee and who is the mortgagor quizlet?

lien or encumbrance on the real property of a debtor, called a mortgagor ( the borrower). they receive a loan and in return gives a not and mortgage to the lender called the mortgagee. You just studied 57 terms!

Why is it called mortgage?

Mortgage. “Word nerds will notice an eerie root word in ‘mortgage’ — ‘mort,’ or ‘death,'” Weller writes. “The term comes from Old French, and Latin before that, to literally mean ‘death pledge. ‘”

What is the difference between loan and mortgage?

While a mortgage is a loan that can help you buy a house, a personal loan is a loan that can be used for just about anything. You can use a personal loan to pay for a home improvement project, consolidate credit card debt or even go on vacation.

Who holds the security for a mortgage loan quizlet?

The mortgagor gives the mortgagee legal title and retains equitable title. Legal title is returned to the mortgagor upon full payment of the debt. In some states, lenders prefer to use a three party security instrument known as a deed of trust.

How does a lien theory affect the mortgage?

The mortgage agreement serves as the lender’s lien on the property until the loan is paid back completely, but the buyer holds the title to the property instead of the lender. … The lien is extinguished when the loan is paid off in full.

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How does a lien theory affect the mortgage quizlet?

Those that regard the mortgage as a “LIEN” held by the MORTGAGEE (LENDER) agains the property OWNER by the MORTGAGOR (BORROWER) are called LIEN-theory states. In a lien theory state, the borrower KEEPS LEGAL TITILE to the property during the period of the loan and the lender places a lien against the property.

What is the primary purpose of a mortgage?

A mortgage is a loan and legal contract to finance the purchase of a home. In return for the bank loaning you money to purchase a home, it designates your new home as collateral. If you don’t make your agreed upon payments, collateral gives the bank the right to take back the property and sell it to cover the debt.

What is the function of a mortgage?

The primary function of a mortgage is to supply a home buyer with enough money to purchase a home, either by buying an existing house or having a new one built. Mortgages pay the seller or builder directly and set out a timetable for repayment that the borrower can afford.

What are FHA mortgage insurance premiums quizlet?

FHA Mortgage Insurance Premiums (MIP) FHA mortgages include 2 insurance premiums be paid for upfront: UFMIP & AMIP. UFMIP. Paid at the time of closing is 1.75% of the mortgage amount in most cases.

What does Subject to the mortgage mean?

In contrast to an Assumption Loan, the term “taking subject to” is when the buyer incurs no liability to repay the loan. The loan stays in the seller’s name, but the buyer gets the deed and therefore controls the property. Although the buyer makes the mortgage payments, the seller remains responsible for the loan.

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When if ever is the loan contingency removed quizlet?

The buyer has 30 days to remove the contingency. By the end of the 30-day period, the seller has received no notice of removal from the buyer. The seller gives the buyer a Notice to Perform, notifying the buyer that he has 2 days to remove the financing contingency.

Where is a mortgage recorded?

The mortgage or deed of trust is recorded in the county land records, usually shortly after the borrowers sign it. If the loan is fully repaid, the lender will record a release (or satisfaction) of mortgage or a reconveyance of deed (used in conjunction with deeds of trust) in the county land records.

Does mortgage mean death grip?

Did you know that the word “mortgage” is Latin and means “death grip?” So if you have a mortgage for your home, you are literally in the grip of death while you work to pay that thing off.