What Are The Different Types Of Mortgages?
A mortgage is a kind of loan or credit. This loan is specifically taken or given against a property or any kind of real estate resources. This loan is required to be paid over a specify period of time. According to property resources there are many different types of mortgages available in the financial market. You are free to choose the one which will suit your requirements and your budget.
Types of Mortgages:
I. Hassle-free Mortgage: in this type of mortgage the mortgager does not hand over the property, but he agrees that if he fails to pay the loan-amount which he has taken against that property, then the lender has the right to sell the property. This is a hassle-free mortgage, because it is simple in its approach.
II. Usufructary Mortgage: in this type of mortgage as the name suggest the mortgager hands over the property to the mortgagee until he is able to pay back the loan-amount and get back his property. Here the mortgagee gets the benefit of enjoying any kind of profits like rents, lease, etc, coming from that property.
III. Mortgage on Conditional Sale: in this type of mortgage there are certain conditions on which the loan is given. The mortgagee has the right to sell the property if the loan-amount is not paid on the date specified by the mortgager. If the mortgager manages to pay the loan then the sale will become null and void. If the mortgager manages to pay the loan-amount then the mortgagee will have to transfer his property back to him.
IV. English Mortgage: when a mortgagee agree to transfer the property of the mortgager on [payment of the loan-amount on fixed date then it is called an English mortgage.
V. Anomalous Mortgage: when a mortgage qualifies none of the conditions mentioned in the above four mortgages then it is called an anomalous mortgage.
These were five different types of mortgage from which you can choose from. For details refer property guide.
Author Bio:
Cheryl Ross is an expert adviser on various property resource. Here she tells you about the different types of mortgages available in the financial markets. For details visit this property blog www.realpropertyfunda.com/
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