Mortgage and Types Mortgage

Mortgage and Types Mortgage

A simple definition of a mortgage is a type of loan you can use to buy or refinance a home. Mortgages are also referred to as “mortgage loans.

1-2 Questions about the financial organizations like Mortgage Loans are asked in the government exam in the General Awareness section. Here we are providing the complete information regarding the Mortgage Loans .

Types of mortgage Loans  related Complete Information will be very helpful in the General awareness section in different competitive exams like Bank, SSC, Railways, etc.

Mortgage 

A loan used to buy real estate. A mortgage is secured by the property it is used to purchase. One must make monthly payments on a mortgage, and there is a set term before full payment is due, often 15, 20, or 30 years. Some mortgages have fixed interest rates, while others have variable interest rates. If one defaults on a mortgage, the bank making it may take possession of the real estate and sell it to recover its investment. Some banks, notably savings and loans, specialize in making mortgage loans.

एक ऋण अचल संपत्ति खरीदने के लिए इस्तेमाल किया। एक बंधक को उस संपत्ति से सुरक्षित किया जाता है जिसका उपयोग खरीदने के लिए किया जाता है। एक बंधक पर मासिक भुगतान करना चाहिए, और पूर्ण भुगतान होने से पहले एक निर्धारित अवधि होती है, अक्सर 15, 20 या 30 साल। कुछ बंधक में ब्याज दरें निर्धारित हैं, जबकि अन्य में परिवर्तनीय ब्याज दर हैं। यदि कोई बंधक पर चूक करता है, तो बैंक इसे बनाने के लिए अचल संपत्ति पर कब्जा कर सकता है और अपने निवेश को पुनर्प्राप्त करने के लिए बेच सकता है। कुछ बैंक, विशेष रूप से बचत और ऋण, बंधक ऋण बनाने में माहिर हैं

Mortgage-backed security

• Mortgage-backed securities are investments that are secured by mortgages. They’re a type of asset-backed security. A security is an investment that is traded on a secondary market. It allows investors to benefit from the mortgage business without ever having to buy or sell an actual home loan. Typical buyers of these securities include institutional, corporate or individual investors.
• When you invest in an MBS, you are buying the rights to receive the value of a bundle of mortgages. That includes the monthly payments and the repayment of the principal. Since it is a security, you can buy just a part of the mortgage. You receive an equivalent portion of the payments. An MBS is a derivative because it derives its value from the underlying asset.

बंधक-समर्थित प्रतिभूतियां निवेश हैं जो बंधक द्वारा सुरक्षित हैं। वे एक प्रकार की संपत्ति समर्थित सुरक्षा हैं। एक सुरक्षा एक निवेश है जिसे एक द्वितीयक बाजार पर कारोबार किया जाता है। यह निवेशकों को कभी भी एक वास्तविक गृह ऋण खरीदने या बेचने के बिना बंधक व्यवसाय से लाभान्वित करने की अनुमति देता है। इन प्रतिभूतियों के विशिष्ट खरीदारों में संस्थागत, कॉर्पोरेट या व्यक्तिगत निवेशक शामिल हैं।

जब आप एमबीएस में निवेश करते हैं, तो आप बंधक के बंडल के मूल्य को प्राप्त करने के लिए अधिकार खरीद रहे हैं। जिसमें मासिक भुगतान और मूलधन का पुनर्भुगतान शामिल है। चूंकि यह एक सुरक्षा है, आप बंधक का सिर्फ एक हिस्सा खरीद सकते हैं। आपको भुगतानों के बराबर हिस्सा मिलता है। एमबीएस एक व्युत्पन्न है क्योंकि यह अंतर्निहित परिसंपत्ति से इसका मूल्य प्राप्त करता है।

How a Mortgage-Backed Security Works

• First, a bank or mortgage company makes a home loan. The bank then sells that loan to an investment bank. It uses the money received from the investment bank to make new loans.
• The investment bank adds the loan to a bundle of mortgages with similar interest rates. It puts the bundle in a special company designed for that purpose. It’s called a Special Purpose Vehicle or Special Investment Vehicle. That keeps the mortgage-backed securities separate from the bank’s other services. The SPV markets the mortgage-backed securities. The mortgages stay in the SPV.

सबसे पहले, एक बैंक या बंधक कंपनी एक गृह ऋण बनाती है। बैंक फिर उस ऋण को एक निवेश बैंक को बेचता है। यह नए ऋण बनाने के लिए निवेश बैंक से प्राप्त धन का उपयोग करता है।

निवेश बैंक ऋण को समान ब्याज दरों के साथ बंधक के एक बंडल में जोड़ता है। यह बंडल को उस उद्देश्य के लिए डिज़ाइन की गई एक विशेष कंपनी में रखता है। इसे विशेष प्रयोजन वाहन या विशेष निवेश वाहन कहा जाता है। यह बंधक-समर्थित प्रतिभूतियों को बैंक की अन्य सेवाओं से अलग रखता है। एसपीवी बंधक-समर्थित प्रतिभूतियों का विपणन करता है। बंधक एसपीवी में रहते हैं।

Types of mortgage

Simple Mortgage

•  In a simple mortgage, mortgagor makes a promise to himself to pay the mortgage money and agree that if he fails to pay a loan amount, a mortgagee will have right to sell the mortgaged property and cover the loan amount.

Mortgage by conditional sale

• In a mortgage by conditional sale, there is some condition put at the time of the agreement between the mortgagor and mortgagee.
• A condition may be like if, in case of default of payment of loan amount after a certain date, a sell become unavoidable or many more conditions.

Usufructuary mortgage

• In a usufructuary mortgage, a mortgagor delivers possession or bind to deliver ownership to the mortgagee and authorizes to retain ownership of property till the payment fully covered it includes principal amount, interest amount to the mortgagee.

English mortgagee

• In English mortgagee, a mortgagor makes a promise to pay the mortgage amount on a certain date and transfer ownership to the debtor with a provision that he has to re transfer the ownership once the payment done by the mortgagor.

Anomalous Mortgage

• The anomalous mortgage is the which is not a simple mortgage, a mortgage by conditional sale, a usufructuary mortgage, an English mortgage or a mortgage by deposit of title deeds within the section 58 is called an anomalous mortgage.

Equitable mortgage

• In an equitable mortgage, a mortgagor gives original title deed to the bank with an aim to create security there on.
• An equitable mortgage is created by depositing the original title deeds along with documents.
• This, a mortgage has no need to be registered with sub-registrar.

Registered mortgage

• In a registered mortgage, a charge is created on the property with sub- registrar formally.
• A written proof is used for the security purpose and in case a borrower fails to pay the amount a lender has right to take ownership of property and vice versa

Balloon Mortgages

• Balloon mortgages are just for short term and it has fixed rate mortgage.
• In balloon mortgage, a monthly payment is lower because of large payment at the end of a term.
• A balloon payment is for the honest and qualified borrowers who have good credit history.

Reverse mortgage

• A reverse mortgage as the name suggests it works on reveres stream. It is mortgage loan in which a lender pays monthly installments to the borrower.
• A reverse mortgage is helpful to the older people in their financial need.