What is a mortgage

What is a mortgage

By HouseFurb, Sep 18, 2018

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Mortgage is an agreement that allows you to borrow money from a bank or similar organization, especially in order to buy a property. It is simply loan that is secured on an immovable property. This mortgage is lent to you in a lump sum and it is legally bound to the property by the attorneys who register the mortgage bond. This loan is payable over lengthy period of time which is usually 20years, the period can vary between 5-20 years depending on the circumstances.

'Secured' means that if you fail to make payments as you agreed, the lender has the right to sell your property in order to recover their money. This is rare but it is important to understand from the outset that if you do not keep up repayments on your mortgage you are at risk of losing your property.

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