What is a Mortgage? How to Overcome Mortgage Problems
A mortgage is a type of loan, often used as a way of purchasing a house, where the mortgage lender provides part of the purchase price (often the majority of it) in exchange for the guarantee of repayment of the loan subject to interest. The mortgage incurs a rate of interest that varies according to the term and other loan features. When you obtain a mortgage to buy a house, you borrow the money from a lender (often a bank) and promise to pay back that money, usually with interest and in regular payments. The lender registers a “charge” against the property title that is an interest in land granted by you (the registered owner) to your lender as security to your lender for the mortgage loan. That "charge" means that if you don’t make your mortgage payments, your lender has the legal right to foreclose on your outstanding mortgage loan. Foreclosure allows your lender to take or sell your house by first getting the court’s permission to do so.
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