A simple mortgage is effected only on immovable property, that immovably property consists of residential real estate, improvements that arise from things attached to the ground such as buildings, trees, and machinery. A simple mortgage is different from a sale which is the transfer of an equal interest in a certain immovable property and is different from mortgage wherein the owner of the property transfers his right to collect a specified amount of money periodically. The owner may use the money as he wishes, but he is still required to pay it back. In a simple mortgage, the mortgagor or the person who lends the money also becomes the creditor of the mortgagor.
There are two kinds of mortgagees, the first is a full mortgage. A full mortgage is normally used for purchasing residential property. This is a nonrecourse loan, which means that the lender has to recover his lent money if the mortgagor defaults. Unlike other forms of mortgages in which the mortgagee has the option to choose foreclosure or sell the mortgaged property to recover the principal, in a full mortgage, the mortgagor has no other choice but to go through foreclosure and therefore pays the lender for the money he borrowed.
To determine the amount that needs to be paid monthly, you need to add the remaining balance of the mortgage (which is the remaining unpaid balance of the loan after the interest is calculated) to the value of the residential property that you are going to buy. You can get a mortgage calculator from most mortgage companies or online mortgage sites to help you determine your monthly mortgage payment. Most mortgage calculators allow you to plug in the value of your property, the amount of your loan and your interest rate. Once you determine how much money you will be able to borrow and the interest rates, you can easily determine your monthly payment.
How much house you need to buy is an important factor in determining your monthly mortgage payment. It depends on the amount of loan term you have. If you have a lot of loan term, it means that you will pay less per month since there are many years before you will have to repay your mortgage. There are two ways of calculating loan term: the amortization schedule method and the cost of financing method. Using an amortization schedule is more reliable than the cost of financing since the payment schedule does not change much with the changes in the economy.
Usually, a mortgagor or his legal representative (borrower) gives the mortgagee a copy of title deeds, also known as deeds of trust. Title deeds allow the mortgagee to access a part of the property without having to give the mortgagee first notice. When the mortgagor is ready to purchase the property, he goes to the title offices to obtain the keys to properties. The mortgagee can inspect the property at any time during the process.
Usually, when you sell a property that is mortgaged, the mortgagee obtains title deeds. If you are the mortgagor, you give the mortgage company a notice to repossess the property if you are not able to pay off your debts. Usually, the company will require you to give them three months’ notice before repossessing the property. If you are unable to do so, your mortgage is considered to be an anomalous mortgage. You can avoid this type of mortgage by simply providing the mortgage company notice prior to selling your property.
On the other hand, when you are mortgaging an asset that is not a single-family residence, you can use the “conditional sale process.” In this case, you and the mortgagor to sign a contract that states that you will sell your mortgaged property to a third party at a specific price, given a specific date. Your mortgage is considered to be an “unlocked mortgage” in this case. The third party, on the other hand, must buy the property for the amount specified in the contract. A person who acquires rights to your mortgaged property without the involvement of a court system is called a “murderer” in this instance.
It is also possible for you to refinance your mortgage loan. In this case, you can change your interest rate or the term of your loan without having to go through a legal process with your lender. The mortgage loan term refers to the period of time you must pay your monthly loan amount until you own the home you bought with your mortgage loan.