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| What is Mortgage?
Mortgage it's an insurance what is put up on a real estate. Mortgage is useful when a customer makes a purchase of real estate which means they need a lot of money. Using it means that the customer doesn't have to put up that amount in a short period of time. Before getting the mortgage they predefine the interest payed and the time until it has to be payed back in a contract.
For example your mortgaging a house, and you agree to put your house as insurance to the mortgage. Now if you default on your payment then the bank takes your house, evicts the persons living in there and the sells it off to cover it's losses. | | | | |
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