Boston Real Estate for Sale

You’ll notice that whenever I talk about mortgages, I actually say “mortgage loans”. That’s because, if you buy a home and you borrow the money, you’re not paying your “mortgage”, you’re paying your “mortgage loan”.

Here’s a better explanation:

Most of us are accustomed to calling our home loan a mortgage, but that isn’t an accurate definition of the term. A mortgage is not a loan, and it is not something that the lender gives you. It is a security instrument that you give to the lender, a document that protects the lender’s interests in your property.

How a Mortgage Works

* There are two parties to a mortgage. You are the mortgagor, or borrower, and the lender is the mortgagee.

* A mortgage document creates a lien on the property, which serves as a lender’s security for the debt. The lien is recorded in public records, probably at your county courthouse.

* Ownership cannot be transferred to someone else until you pay the debt to release the lien.

* Even if your loan is secured by a mortgage, you still have full title to the property. No one else has rights of ownership.

* A mortgage gives the lender the right to sell the secured property to recover funds if you do not pay the debt. The sales process is called foreclosure.

* When a mortgage is used for security, foreclosure must usually progress through the court system. That type of foreclosure is called a judicial foreclosure.

Home Buying – A Mortgage is Not a Home Loan – About.com

Of course, in the real world, just about everyone uses the term “mortgage” to mean “mortgage loan”.

Doesn’t mean it’s right!

Back to Boston condos for sale homepage

Contact me to find out more about Boston condos for sale or to set up an appointment call/text 617-595-3712.

Boston condos

Boston condos for sale

SEARCH FOR CONDOS FOR SALE AND RENTALS

For more information please contact one of our on-call agents at 617-595-3712.

Updated:  1st Q 2018

Call Now