- Home Mortgage
A loan given by a bank, mortgage company or other financial institution for the purchase of a primary or investment residence. In a home mortgage, the owner of the property (the borrower) transfers the title to the lender on the condition that the title will be transferred back to the owner once the payment has been made and other terms of the mortgage have been met.
A home mortgage will have either a fixed or floating interest rate, which is paid monthly along with a contribution to the principal loan amount. As the homeowner pays down the principal over time, the interest is calculated on a smaller base so that future mortgage payments apply more towards principal reduction as opposed to just paying the interest charges.
Home mortgages allow a much broader group of citizens the chance to own real estate, as the entire sum of the house doesn’t have to be provided up front. But because the lender actually holds the title for as long as the mortgage is in effect, they have the right to foreclose the home (sell it on the open market) if the borrower can’t make the payments.
A home mortgage is one of the most common forms of debt, and it is also one of the most advised. Mortgage loans come with lower interest rates than almost any other kind of debt an individual consumer can find.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Home Mortgage Disclosure Act — ( HMDA) (Pronounced hum da). A Federal statute that requires most lenders in metropolitan areas to collect data about their housing related lending activity. Lenders must file annual reports with their Federal supervisory agencies and make… … Financial and business terms
Home mortgage interest deduction — Taxation An aspect of fiscal policy … Wikipedia
Home Mortgage Disclosure Act — The United States Home Mortgage Disclosure Act (or HMDA, pronounced HUM duh) was passed in 1975. It requires financial institutions to maintain and annually disclose data about home purchases, home purchase pre approvals, home improvement, and… … Wikipedia
Home Mortgage Disclosure Act - HMDA — A federal act approved in 1975 that requires mortgage lenders to keep records of certain key pieces of information regarding their lending practices. This information includes the number of pre approvals made, the number of mortgages granted,… … Investment dictionary
American Home Mortgage — Infobox Company company name = American Home Mortgage company company type = Defunct Corporation slogan = foundation = New York, NY (1987) location = Melville, NY key people = Michael Strauss, CEO President num employees = industry = Finance… … Wikipedia
Mortgage fraud — is crime in which the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known the truth. In United States… … Wikipedia
Mortgage discrimination — or mortgage lending discrimination is the practice of banks, governments or other lending institutions denying loans to one or more groups of people primarily on the basis of race, ethnic origin, sex or religion. One of the most notable instances … Wikipedia
Mortgage Foundation — Inc. Type Private Industry Finance Founded 2003 Headquarters Ft Lauderdale, Florida … Wikipedia
mortgage relief — ➔ relief * * * mortgage relief UK US noun [U] TAX ► in the UK, the system that allows you to not pay tax on the part of your income that you use to pay back the money you borrowed to buy your home: »Mortgage relief is available through the tax… … Financial and business terms
mortgage delinquency — When the borrower on a home mortgage is late in making payments typically 30 to 90 days behind. At the end of the proper delinquency period (which may be determined by state law), the lender may institute foreclosure proceedings. Category: Real… … Law dictionary