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The difference between a loan and a mortgage

The difference between a loan and a mortgage what a mortgage is. I think of us have at least a general sense of it, even better than that, actually go into the numbers and understand a little bit what you are actually doing when youe paying a mortgage,it’s made up of and how much of it is interest versus how much of it is
actually paying down the loan. Let’s just start with a little example. Let’s say that there is a house I like. that that is the house that would like to purchase.

It has a price tag of, let’s say that I need to pay $500,000 to buy that house.

This is the vendor of the house right here.The difference between a loan and a mortgage
And they have a hair.That’s the merchandiser of the house.I would wish to go.

I would like to buy the
house. This is me right here. And I’ve been able to save up $125,000 dollars. I’ve been able to save up $125,000 but I would really like to live in that house so I go to a bank. I go to a bank, let me geta good color for a bank.

 That is the bank right there. And I say, “Mr. Bank, are you able to lend Maine
“the remainder of the number i would like for that house?” that is actually $375,000. i am golf shot twenty fifthdown.
This range right here, that’s twenty fifth of $500,000. therefore I raise the bank, “Can Ihave a loan for the balance?
Can I have $375,000 loan?” and therefore the bank says, “Sure. You seem to be a pleasant guy
“with sensible|an honest|a decent} job whohas good credit rating.

“I can offer you the loan however whereas you are paying off the loan you cannot have the title of that house.
“We have to be compelled to have that title of the house “and once you pay off the loan,
“we’re reaching to offer you the title of the house.” what is gonna happen here is that the loan is gonna attend Maine,
so it’s $375,000.The difference between a loan and a mortgage

$375,000 loan.Then I will go and get the house.I’m gonna offer the entire $500,000,$500,000 to the vendor of the house,and i will really moveinto the house myself, presumptuous i am victimization it for my very own residence.


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11 months ago (November 29, 2018) 368 Views

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