Know you Mortgage Options - McKinney Home Loans
Buying a new property is a daunting process. It requires proper planning, shopping for the right home, and your finances sorted out. Mortgage loans are very significant in accommodating property owners to finance their new home.
We at the Core Team USA Mortgage offers you a helping hand. Our Mortgage team will be able to provide you financial assistance for you to buy a property in McKinney Home Loans. Our team has a strong and genuine principle to help our client’s for life.
What is a Mortgage?
A mortgage is a loan system where a property can be used as a guarantee to get money or financial help. This process lets people buy the property or home that they use as collateral to borrow money. The money borrowed will be used to pay the property while the loan is being guaranteed by the property.
A mortgage is consist of a creditor and a debtor. The creditor provides the loan, while the debtor is the property owner. Once the transaction for a mortgage is closed to a deal, the debtor gets a loan to pay the property and promises to pay the loan with interest over a period of time. If they failed to pay as agreed the creditor takes the property in place of the loan, this process is called foreclosure.
Types of Mortgage
Simple Mortgage - This is also called the Indian Transfer of Property Act, a simple mortgage transaction that does not acquire the property. The mortgaged property will remain unoccupied and not owned by the debtor until the loan is paid. If he fails to pay the loan amount, the mortgaged property will be sold in the governance of the law.
English Mortgage - The debtor promises to repay the loan amount on a certain date. The debtor will transfer the property to the creditor, once the loan is paid, the property is transferred back to the owner.
Reverse Mortgage - This loan is reversed in a way where the creditor is the one paying the monthly installment for the borrower, instead of the borrower paying a monthly installment. This is a reversed mortgage payment stream, it allows debtors to gain a tax-free income on their valued homes. This mortgage payment scheme applies mainly to older people and helps them improve their living condition and be financially independent.
Usufructuary Mortgage - The property in this mortgage is given to the borrower as a form of security. The possession of the property is given to the debtor of the mortgage and the creditor bind himself to deliver the mortgaged property. However, the creditor of the mortgage is not liable for the property unless agreed otherwise. The borrower or property owner is allowed to repay himself out of the profits or rent from the mortgaged property. The creditor or lender will then receive the payment from the property until the loan is fully paid while the owner gets to keep the property.
We, at Core Team USA Mortgage in McKinney Home Loans, has a goal to provide our customers with the best life by helping home buyers achieve their dreams.