[et_pb_section fb_built=”1″ admin_label=”section”][et_pb_row admin_label=”row”][et_pb_column type=”4_4″ parallax=”off” parallax_method=”on”][et_pb_text admin_label=”Text”]<\/p>\n
[\/et_pb_text][et_pb_code admin_label=”Code”]<center><iframe src="https:\/\/solutions.aag.com\/?utm_medium=seo#ZipCode"<!– [et_pb_line_break_holder] –>width="100%" height="750" style="border:none" frameborder="0" allowtransparency="true" background-color="transparent"<!– [et_pb_line_break_holder] –>align="CENTER"><!– [et_pb_line_break_holder] –><p><\/p><\/iframe><\/center><!– [et_pb_line_break_holder] –><!– [et_pb_line_break_holder] –>*<!– [et_pb_line_break_holder] –>*<!– [et_pb_line_break_holder] –>*<!– [et_pb_line_break_holder] –>A mortgage loan, also referred to as a mortgage, is used by purchasers of real property to raise funds to buy real estate; or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is \u201csecured\u201d on the borrower\u2019s property. This means that a legal mechanism is put in place which allows the lender to take possession and sell the secured property (\u201cforeclosure\u201d or \u201crepossession\u201c) to pay off the loan in the event that the borrower defaults on the loan or otherwise fails to abide by its terms. The wordmortgage is derived from a \u201cLaw French\u201d term used by English lawyers in the Middle Ages meaning \u201cdeath pledge\u201d, and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.[1] Mortgage can also be described as \u201ca borrower giving consideration in the form of a collateral for a benefit (loan).<!– [et_pb_line_break_holder] –><!– [et_pb_line_break_holder] –>Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property (for example, their own business premises, residential property let to tenants or an investment portfolio). The lender will typically be a financial institution, such as a bank, credit union or building society, depending on the country concerned, and the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably. The lender\u2019s rights over the secured property take priority over the borrower\u2019s other creditors which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first.<!– [et_pb_line_break_holder] –><!– [et_pb_line_break_holder] –>In many jurisdictions, though not all (Bali, Indonesia being one exception[2]), it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed.<!– [et_pb_line_break_holder] –><!– [et_pb_line_break_holder] –>Refinancing may refer to the replacement of an existing debt obligation with another debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower\u2019s credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage.<!– [et_pb_line_break_holder] –><!– [et_pb_line_break_holder] –>If the replacement of debt occurs under financial distress, refinancing might be referred to as debt restructuring.<!– [et_pb_line_break_holder] –><!– [et_pb_line_break_holder] –>A loan (debt) might be refinanced for various reasons:<!– [et_pb_line_break_holder] –><!– [et_pb_line_break_holder] –>To take advantage of a better interest rate (a reduced monthly payment or a reduced term)<!– [et_pb_line_break_holder] –>To consolidate other debt(s) into one loan (a potentially longer\/shorter term contingent on interest rate differential and fees)<!– [et_pb_line_break_holder] –>To reduce the monthly repayment amount (often for a longer term, contingent on interest rate differential and fees)<!– [et_pb_line_break_holder] –>To reduce or alter risk (e.g. switching from a variable-rate to a fixed-rate loan)<!– [et_pb_line_break_holder] –>To free up cash (often for a longer term, contingent on interest rate differential and fees)<!– [et_pb_line_break_holder] –>Refinancing for reasons 2, 3, and 5 are usually undertaken by borrowers who are in financial difficulty in order to reduce their monthly repayment obligations, with the penalty that they will take longer to pay off their debt.<!– [et_pb_line_break_holder] –><!– [et_pb_line_break_holder] –>In the context of personal (as opposed to corporate) finance, refinancing multiple debts makes management of the debt easier. If high-interest debt, such as credit card debt, is consolidated into the home mortgage, the borrower is able to pay off the remaining debt at mortgage rates over a longer period.<!– [et_pb_line_break_holder] –><!– [et_pb_line_break_holder] –>For home mortgages in the United States, there may be tax advantages available with refinancing, particularly if one does not pay Alternative Minimum Tax.[\/et_pb_code][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section”][et_pb_row admin_label=”row”][et_pb_column type=”4_4″ parallax=”off” parallax_method=”on”][et_pb_text admin_label=”Text”]<\/p>\n
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