A Brief Overview of Mortgage Loans  9

Mortgage LoansMortgage loans have been around for quite a long time. If handled carefully, they can be the gateway to a brighter future. The system of securing land for payment of money is believed to have originated in Anglo-Saxon England. It was likely in force in some form across the globe from time immemorial. In more recent years, mortgage loans have emerged as a traded, marketable commodity.

Due to the ever increasing need to raise funds for housing and commercial projects, mortgage loans are as popular as ever. There is a vibrant market in many sectors related to construction, real estate, industry and commerce. With increased urbanization and the escalating cost of land, for the vast majority of people the only way to fulfill their dream of building a home is through the practical gateway of mortgage loans.

Today the words mortgage and mortgage loan are synonymous and often used interchangeably. What exactly is a mortgage? In legal parlance, it is a conditional pledge of one’s property for the performance of an obligation or the paying back of a debt. From a business point of view, it is called a debt instrument for the furthering of a business activity, or the construction of a house or an apartment or execution of an agricultural activity. The arrangement of the terms and conditions of the mortgage gives the person advancing money temporary ownership over the asset which will go back to the original owner only at the repayment of the borrowed sum.

Today mortgage loans have become instrumental to the commercial life of big cities. They are a huge boon for people who are looking to finance the building of a house or the starting of an enterprise. There are a range of mortgage loans available in the market to choose from. The beauty of a mortgage loan is that it makes ventures which involve huge initial investment viable. If the cost of the project is very high a mortgage loan might well be the most cost effective solution to fund it.


How does a mortgage loan work when looking for a mortgage BROKERSĀ ketteringĀ ? In a mortgage loan, due to the conditional pledging of the assets to the lender, the risk of payback is reduced considerably. This makes the cost of the borrowed money less expensive as the risk involved is lower. As a result, a mortgage loan comes with attractive interest rates compared to unsecured forms of credit such as credit cards or personal loans.

A mortgage can be a blessing for the borrower as well as for the lender. The opportunity to own one’s dwelling from the mortgage takes away the expensive costs on rental housing and gives, in some cases, a major portion of the installments to pay back the loan. There is also the enduring satisfaction of owning your own home. In a business enterprise, the entrepreneur gets breathing room to pay the borrowed money spread over many installments.

The flourishing business in mortgage loans has made capital for more available, giving many the opportunity to build their dream home or launch their business. Indeed, mortgage loans are an elegant solution that mankind has increasingly perfected over the many years of his history.