When it comes to the concept of
taking a loan from an institutional lender, you often find yourself having to
give in a certain amount of security as collateral. The idea of this security
is to protect the personal interests of the lenders who provide you with the
money. In case you're unable to pay back your dues for whatever reasons, the
lender can use the property or assets accepted as security and sell it off to
make up for the money lent out. Due to this, the value of the asset is usually
the same as that of the loan you’ve borrowed.
When it comes to what you wish to
give in as a security, it’s usually advisable to Only pick oneasset as a
security. Of the many assets that can be used ranging from fixed to movable
ones, mortgage of a house is usually one that many opt for.
What’s a mortgage?
Again kept and used as security, a mortgage can be defined as the property of a borrower
that’s kept by the lender as security until the borrowed amount with interest
is completely paid off. Due to it’s nature of involvement of a property,
mortgage is usually done for big real estate loans that may be borrowed.
Depending on the amount, many are forced to pit15 year mortgage vs 30 year
mortgage, and understand what’s best for them in the long run.
Click here know more about #SpotifyvsPandora
No comments:
Post a Comment