Tuesday, 21 August 2018
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This Old House - Do-it-Yourself

What Is Mortgage Lending?

Written by Posted On Friday, 10 August 2018 09:41

Money makes the world go round. No matter how idealistic you are, you can’t deny how big the role money plays in our lives. Unfortunately, we do not always have the cash to fund the things we want to buy. This is most especially true when we want to purchase large assets like lands, or houses. Hence, we turn to lending institutions to help turn our dreams into reality.

What Is Mortgage Lending?

Mortgage lending or mortgage loan is a type of loan acquired for the financing of the purchase of either a real or personal properties. Generally, with mortgage loans, real property is used as a security for the loan. The following are some common terms used when talking about mortgage lending:

* Loan Principal: Often called “principal” for short, loan principals are the actual amount borrowed by the borrower. It is the basis of the interest to be paid during or at the end of the term of the loan.

* Interest/Interest Rates: The interest is the additional amount added to the principal that is to be collected by the lender. It is computed by multiplying the principal to the interest rate, a percentage agreed upon by the lender and borrower. There are two types of interest, namely:

o Simple Interest: With this kind of interest, only the existing principal is used as a basis in computing the interest payable.

o Compound Interest: This is a type of interest wherein the interest payable is computed based on the sum of the existing principal and the previously accrued interest.

* Loan Pre-qualification: Pre-qualification is the first step in a mortgage process. It is the step in which a bank or financial institution decides whether or not an applicant is fit to be a borrower.

* Foreclosure: This is the attempt of a lender to recover their investment by forcing the sale of the collateral given by the lender. It is only done when the borrower is unable or chooses not to pay their dues.

Toner Real Estate Solutions provides private loans customized to client’s independent situation. They are a group of private lenders directly with their borrowers without the need for intermediaries or brokers to emphasize confidentiality. You can contact them by visiting their website.

 

Listing Additional Info

  • State: Washington
  • Address: 1628 South Mildred , Suite 202 Tacoma
  • City: Washington
  • Zipcode: 98465
  • SOLD: no
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Terrel Watkins

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