What is a Mortgage?

A mortgage is a loan which is secured against the value of a property. For that loan, you pay interest on the amount you received. In case you do not pay back the loan, the lender will be entitled to take the property and sell it to repay your mortgage debt. Most lenders offer flexibility on how much you pay and when you pay it. You can often vary the term of the loan too, allowing you to repay it early and save yourself interest.

What kinds of properties can be mortgaged?

You can get a mortgage on houses, apartments and land as long as the property provides good security for the loan. It can even be a house that isn't yet built, or one you plan to rent.

Characteristic of Mortgages for comparison

• Amount - How much money you borrow.
• Payment Period - How much time will it take you to return the money.
• Interest - The percentage rate paid on the loan. 

Amount - How much money can I borrow?
The amount depends on the following:

• Income- The amount the lender will allow you to borrow is usually up to 3 times your salary. If it's a joint application you can usually borrow up to 2.5 times your joint income, but sometimes, up to 4 times one income, plus the second.
• Property Value- The amount would not be more than the property value.
• Deposit-  The amount you give as a deposit. This affects the the rate of the mortgage - the higher the deposit, the lower the rate.
• Credit History- If you haven't paid your previous loans on time, you have a poor credit history, and this will affect the lenders decision on how much to lend you, and on what rate. 

How does a home mortgage process is carried out?

The mortgage is a contract in which a a piece of property is being held by the lender untill the sum of money loand for purchase is returned to the lender fully. So we have thmortgage wich is a document and a loan which was being used for purchasing property.

The mortgage loan begins with first choosing the property of your choise, then you determine a rational sum of money you want to loan for purchasint the property, you apply to a lender for loaning the money through a home mortgage loan. The lender will consider your financial history by llking at your imployment history, present income.

Then he will decide whether or not you are capable of repaying the loan before approving it. There is a fee that you will have to pay the lender for youre home mortgage.  The interest rate is charged accordig to buyer's credit rating. The annuall percentage rate (APR) will determin the mortgage cost.