F I N A N C E : W H AT I S
A M ORTGAGE?
BRANDON GLICKSTEIN Co-Founder & Integrator at Monster Lead Group
A m o r t ga ge i s a typ e of s ec u re d loan specif ically designed for t h e p u rc ha s e of p ro p er ty. Lenders will provide a percentage of t h e va l u e of th e p ro p er ty i n the form of a long-term loan. If b o r rowe rs d efa u l t on m o r tga ge payments, the lender may have t h e ri ght to ta ke own ers h i p of the property as payment.
FINANCE: WHAT IS A MORTGAGE?
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M O RTG AG E D E P O S I T S Most mortgage lenders require the borrower to have at least a proportion of the value of the property to put down themselves as a deposit. They then lend the difference between the deposit amount and the total property value at the time of purchase. The higher the deposit, the more preferrable the loan terms are likely to be.
M O RTG A G E VA LU E Mortgages are taken out based on the value of the property at the time of purchase. Interest rates can be fixed or variable, meaning repayments may change over time. However, even if the value of the property goes up or down, the amount repayable on the mortgage remains the same.
To get into the area in the late 1950s and early 1960s, people had to take a ferry to Negril Bay and wade through the sea to get to shore.
B R A N D O N
G L I C K S T E I N
YOU CAN LEARN ABOUT CONVENTIONAL LOAN MORTGAGES by visiting the blog of Brandon Glickstein.