Mortgage Loan: A Type of Secured Loan
A mortgage loan is a type of loan which is secured by taking out a mortgage. Such a mortgage is usually the borrower’s own property or houses or other non-movable assets. A mortgage loan taken out must be large enough to cover the entire value of a loan, failing which multiple mortgages would have to be taken.
But what is a mortgage loan exactly? Well a mortgage is basically giving out one’s property to secure and obtain a loan. It is often a requirement of secured loans to have a collateral first before being granted access to the loan. So often, the most preferred way of giving out collateral is by keeping one’s properties as the collateral.
In many countries around the world, but of course not in all, it is an acceptable practice that buying a home or property is secured by taking out a mortgage loan. This is because very few people in such countries have the kind of financial resources or money at hand or have sufficient savings and liquid funds to enable them to purchase their dream home right away. Therefore, in such countries where the demand for owning homes is very high, and people are not satisfied with simply renting out a place, a very strong domestic market has developed for lending mortgage loans.
Interestingly, the word mortgage is French in origin. Its origins can be traced to French laws where it was first used. The literal translation for mortgage is “dead pledge”.
Get the Mortgage Loan and other offers that you need now!
Processing your request, Please wait....
