Mortgage Basics – Understanding How it all Works
While there are a number of ways to finance a home purchase, one of the most common ways to do so is using a mortgage. A mortgage is a legal instrument that allows a finance company to advance funds for the purchase of a home, and then record on official land records the existence of the loan. This guarantees that the lender can be protected and the title to the home cannot be sold to another person unless and until the title to the residence is clear from legal encumbrances. The term mortgage is from the french for “dead deed,” which means that the deed is not useful until it has been cleared. You can obtain mortgage financing through…
