WHAT the HECK are MORTGAGES!!!!!! lol?

Ive started to work in a mortgage and financial Brokers company, and I havent a clue what a mortgage is! HELP but explain it like you would a child, because I'm not very bright in that area.WHAT the HECK are MORTGAGES!!!!!! lol?
A mortgage is a three-party promissory note. Here's how it works. A builder builds a structure--let's say a house--and wants to sell it for $100,000. You see the house and want to buy it, but don't have $100,000 cash, which is what the builder wants, even needs in order to continue building homes. At this point, no deal is possible, because you cannot afford to meet the builder's terms, and the builder cannot afford to meet your terms.


Enter the third party--a bank, or a mortgage lender, such as a Savings %26amp; Loan Institution. This third party says to the builder, I will loan the potential buyer $100,000 and pay it to you in a lump sum, thus meeting the builder's need. This third party says to you--the house-buyer--I will loan you $100,000 and pay it to the builder, on your behalf, if you will agree to the following:


1. Let me set the interest rate that I charge you for this loan


2. Let me set the term of the loan as long as I can, 30-years-for example.


3. Let me compound the interest monthly and establish the combined payments of Principal, Interest, Taxes and Insurance (PITI) each month.


4. Also let me establish other fees (closing, etc.) associated with making this deal viable for me, the lender.


You agree. Thus the mortgage is now established.


In a nutshell, that's a mortgage--a three-party promissory note that gets the builder what the builder needs--$100,000 in cash in this example; gets you what you desire--to move into this new house now, in this example; and the mortgage lender (bank, etc.) what he desires--the highest possible return on the loan.


Let's go a step further and look at what happens.


For the first 23 years of a 30-year mortgage period, more than 80% of the monthly ';mortgage'; payments go to pay compound interest. So let's say that you monthly payment is $1000 for 360 months (30 years), You agreed to pay $360,000 for a house with a retail value of $100,000.


Well, there's your answer.


Have a nice dayWHAT the HECK are MORTGAGES!!!!!! lol?
its a big fat loan that the bank gives you to buy property with.





they earn TONS of cash from it in interest and it will take the average person 25 YEARS to pay off.
Well aint that grand??


To know that my house that I've slogged long and hard for could be taken away %26amp; reposessed by someone who doesn't even know what I've defaulted (on through no fault of my own by the way).........


If I were you I WOULD NOT even admit it to myself that I was in charge of something as binding as a mortgage for someone when I had no clue what I was doing!!!!!!!!!!!!!!!!!!!


By the way Einstein.... A mortgage is a huge loan you get to buy a home %26amp; you get charged interest on it, if you don't pay the bank/mortgage company (in this case god help us you) can take the house away....


Maybe you could work in Pizza Hut or something...?


I assume you know what pizza is!?!?!?!
it is a house loan! the bank give you money at a lending rate for the purpose of you to build a house!! eg. car loan is for a car.. student loan for students. mortgage is just a fancy word.
if you are going to buy a home you willneed a bank loan


its called a morgage
Well aint that grand??


To know that my house that I've slogged long and hard for could be taken away %26amp; reposessed by someone who doesn't even know what I've defaulted (on through no fault of my own by the way).........


If I were you I WOULD NOT even admit it to myself that I was in charge of something as binding as a mortgage for someone when I had no clue what I was doing!!!!!!!!!!!!!!!!!!!


By the way Einstein.... A mortgage is a huge loan you get to buy a home %26amp; you get charged interest on it, if you don't pay the bank/mortgage company (in this case god help us you) can take the house away....


Maybe you could work in Pizza Hut or something...?


I assume you know what pizza is!?!?!?!
mortgage is loan again the property of person, or rather the loan amount outstanding againts your property , there are two kinds of loans available in market , one static where installment remin same throughout the period of the loan and variable where the payments keep on changing on the base of intrest of the market
A huge loan given to you by a bank to help you pay for a house, but which you must pay back at incredibly high rates! horrible stuff!
It's just a big loan the bank puts up against the value of the house.





You get charged a hell of a lot of interest for years and years and years, making the bank a million dollars.
how did you get the job?
It literally means Death loan!!





Basically you borrow money from a bank or building society.





say 拢100,000 pounds. Now, you've got to pay that back, but they can give you upto 25 years to do it - earning interest ALL the time on the ORIGINAL sum!!





A common type is an ';endowment policy'; where you pay a sum of money eg. 拢150 a month to be invested, so that at the END of the 25 year period you get back 拢100,000 and clear the original debt. IN ADDITION to this, the mortgage is actually you just paying the INTEREST on the original loan at a fluctuating rate but it'll be about 拢500 a month on that amount - this is PURE PROFIT for the loan company.





In the end your 拢100,000 pound house will have cost about 拢250,000!!