WHAT IS MORTGAGE??

Mortgage financing is the process of underwriting and extending a home loan or mortgage on commercial property to a qualified applicant. The aim or focus of mortgage financing normally centers around two specific goals. 

First, the financing seeks to create revenue for the lender. Second, the extension of mortgages allows qualified individuals and business entities to secure properties that can be repaid in terms that are within the ability of the recipient of the loan to pay off in a timely manner.

In order to understand how mortgage financing works, it is important to grasp the idea behind a mortgage. Mortgages are more than just a simple loan. Loans of this type are associated with the acquisition of real estate, either for personal or commercial usage. 

The terms of the mortgage loan are usually different from a standard bank loan, both in terms of structure and in duration. A mortgage may be written for a period of twenty years or longer, at the discretion of the lender.

In most mortgage financing arrangements, the property that is purchased with the financing is used as collateral for the debt. For the duration of the mortgage, the lender functions as the mortgage holder on the property. Should the owner of the mortgaged property default on the loan, the lender has the right to secure full ownership of the property and offer it for resale to another party.

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