Mortgage Loans
Mortgage is the act of providing something as security or collateral for a loan. The phrase might be encountered when looking for secured loans.
All sorts of home loans are often secured loans. The borrower is required to provide the lender with their property as security. Until the loan has been fully repaid by the borrower, the mortgaged property serves as collateral. Another name for mortgage loans is "loans against property."
Types of Mortgage
Easy Mortgage:
A simple mortgage is an agreement that gives the lender the right to sell the property that was pledged as collateral in the event that the borrower is unable to repay the debt in full.
Sub Mortgage:
If a lender wants to issue a loan to a potential borrower with a poor credit history or low credit score, they usually do so at a higher interest rate. In the event that the borrower did not make payments, it is done to ensure that their money will be recovered. These loans are known as sub mortgages.