guilbert
Apprentice
Joined: 21 May 2006
Posts: 8
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 Posted: 10/13/07 - 09:23 Post subject: |
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| I have been working for almost a year now. I have a steady job and I nice salary. As I am living in a very small apartment, I was considering taking mortgage and getting a new home. Before I do that, I would really like to know what financing mortgage exactly means, as well as re-financing, lending and funding mortgage. |
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demetrius
Apprentice
Joined: 01 Apr 2004
Posts: 7
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| Posted: 11/07/07 - 04:17 Post subject: |
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| Getting a mortgage is one rather common step toward obtaining a new place to live. It is basically a credit where you get a home of a certain value (say 100,000$) and put your old home as a guarantee that you will be able to pay your mortgage. That way, if you fail, you will lose both homes. However, it is not the only scenario in the case of failure. There is re-financing of your mortgage, which means that if you see your monthly rate is too high and you cannot keep up, you have an opportunity to make a better deal thus lowering the monthly fee you are required to pay. If you still do not have enough money (or you have re-financed it too much time), mortgage lenders hop in. They will essentially give you money at somewhat high interest rates which you will then use to pay for your mortgage. Mortgage funding is something very similar to lending, and both are extreme measures. Hope you will never get in such a situation. |
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