logging in or signing up Mortgage Loans jimmyboom Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Dynamic Copy Does not support media & animations Automatically changes to Flash or non-Flash embed WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 1539 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: October 25, 2010 This Presentation is Public Favorites: 0 Presentation Description A Mortgage Loan is offered on mortgage property which can range from personal mortgage property to commercial or real estate properties. Comments Posting comment... 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Edit Comment Close Premium member Presentation Transcript Mortgage Loans : Mortgage Loans http://www.wpimg.com/pk/landing/mortgage_landing.jpg Slide 2: A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. http://t0.gstatic.com/images?q=tbn:JQNQuWo8DY8TCM:http://www.texasmortgagehomeloans.com/wp-content/uploads/2009/10/mortgage_loans.jpg&t=1 Slide 3: A home buyer or builder can obtain financing (a loan) either to purchase or secure against the property from a financial institution, such as a bank, 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. http://www.personalfinancecare.org/blog/wp-content/uploads/2008/11/mortgage-interstrates.jpg Slide 4: A Mortgage Loan is offered on mortgage property which can range from personal mortgage property to commercial or real estate properties. Properties are kept under mortgage as a security for paying off a loan. http://www.theloanservicing.com/wp-content/uploads/2010/08/refinance-home-equity-loan.jpg Slide 5: Technically speaking, a mortgage is defined as the conditional pledge to ones’ property secured against the performance of an obligation or the repayment of a debt. According to investment and economic parameters it is debt instrument secured by forwarding any commercial or real estate as collateral which gives the creditor conditional ownership over the asset which can be discharged only upon repayment of the loan amount. http://aboutmortgageloan.com/images/mortgage8.jpg Slide 6: Mortgage loans are generally availed of in cases of acquiring residential or commercial properties where the initial value is very high. Mortgage loans are lower priced than other loans as value of the property reduces the risk for the loan provider. In other words, a mortgage loan is secured against the property intended to be bought on the part by the borrower. Mortgage properties usually entail certain restrictions on the use or disposal of the property such as paying any outstanding debt before selling the property. Investing in mortgage properties through loans has become the accepted practice in the developed countries such as the USA and UK. Some important participators in the context of mortgage loans are: : Some important participators in the context of mortgage loans are: The Creditor is an individual or institution who has legal rights to the debt secured by the mortgage and often makes a loan to an individual of the purchase money for the property. In terms of institutions, the creditor can be banks, insurers or other financial institutions. He maybe called as mortgagee or lender. http://www.wymortgageloans.com/images/golden-keys.jpg Slide 8: The Debtor is the person who takes the mortgage loan from the creditor and must meet the mortgage conditions imposed by the creditor in order to avoid the creditor enacting provisions on the mortgage to recover the debt. Usually a debtor can be an individuals, landlords or businesses. He is also known as mortgagor, borrower or obligor. http://www.commercialsecondmortgageloans.com/images/Money%20in%20pocket--small.jpg Slide 9: Some other terms in this context may be noted as conveyance or the legal document facilitating the transfer of ownership of unregistered land, a freehold meaning the ownership of land and the property, the title recording the ownership of the property and land and a mortgage deed which specifies that the mortgagee or creditor has a legal charge over the ownership of the property. http://mortgageloansforbadcredit.com/images/mortgage_application.jpg Mortgage loan : Mortgage loan As with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time, typically 30 years. All types of real property can be, and usually are, secured with a mortgage and bear an interest rate that is supposed to reflect the lender's risk. Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property. Basic concepts and legal regulation Slide 11: Property: the physical residence being financed. The exact form of ownership will vary from country to country, and may restrict the types of lending that are possible. Mortgage: the security interest of the lender in the property, which may entail restrictions on the use or disposal of the property. Restrictions may include requirements to purchase home insurance and mortgage insurance, or pay off outstanding debt before selling the property. Borrower: the person borrowing who either has or is creating an ownership interest in the property. Interest: a financial charge for use of the lender's money. Slide 12: Lender: any lender, but usually a bank or other financial institution. Lenders may also be investors who own an interest in the mortgage through a mortgage-backed security. In such a situation, the initial lender is known as the mortgage originator, which then packages and sells the loan to investors. The payments from the borrower are thereafter collected by a loan servicer. Principal: the original size of the loan, which may or may not include certain other costs; as any principal is repaid, the principal will go down in size. Foreclosure or repossession: the possibility that the lender has to foreclose, repossess or seize the property under certain circumstances is essential to a mortgage loan; without this aspect, the loan is arguably no different from any other type of loan. The United States mortgage finance industry : The United States mortgage finance industry Mortgage lending is a major category of the business of finance in the United States. In the U.S., the Federal government created several programs, or government sponsored entities, to foster mortgage lending, construction and encourage home ownership. Slide 14: These programs include : Government National Mortgage Association (known as Ginnie Mae). The Federal National Mortgage Association (known as Fannie Mae) and The Federal Home Loan Mortgage Corporation (known as Freddie Mac). http://www.equitipz.com/wp-content/uploads/2010/02/What-is-Reverse-Mortgage-Scheme.jpg Slide 15: These programs work by buying a large number of mortgages from banks and issuing (at a slightly lower interest rate) "mortgage-backed bonds" to investors, which are known as mortgage-backed securities (MBS). This allows the banks to quickly relend the money to other borrowers (including in the form of mortgages) and thereby to create more mortgages than the banks could with the amount they have on deposit. This in turn allows the public to use these mortgages to purchase homes, something the government wishes to encourage. The investors, meanwhile, gain low-risk income at a higher interest rate (essentially the mortgage rate, minus the cuts of the bank and GSE) than they could gain from most other bonds. Mortgage loan types : Mortgage loan types There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation and legal requirements. Interest: interest may be fixed for the life of the loan or variable, and change at certain pre-defined periods; the interest rate can also, of course, be higher or lower. Term: mortgage loans generally have a maximum term, that is, the number of years after which an amortizing loan will be repaid. Some mortgage loans may have no amortization, or require full repayment of any remaining balance at a certain date, or even negative amortization. Slide 17: Payment amount and frequency: the amount paid per period and the frequency of payments; in some cases, the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid. Prepayment: some types of mortgages may limit or restrict prepayment of all or a portion of the loan, or require payment of a penalty to the lender for prepayment. Thank You : Thank You http://www.homesforsaleinga.com/wp-content/uploads/2010/09/718200811930AMmtg_insurance.jpg You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.