Home owner debt consolidating mortgage

In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed.Mortgages can either be funded through the banking sector (that is, through short-term deposits), or through the capital markets through a process called "securitization", which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations.This article is about real estate mortgage lending.For mortgages in general and their legal structure, see Mortgage law.Over this period the principal component of the loan (the original loan) would be slowly paid down through amortization.In practice, many variants are possible and common worldwide and within each country.

There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage.According to Anglo-American property law, a mortgage occurs when an owner (usually of a fee simple interest in realty) pledges his or her interest (right to the property) as security or collateral for a loan.Therefore, a mortgage is an encumbrance (limitation) on the right to the property just as an easement would be, but because most mortgages occur as a condition for new loan money, the word mortgage has become the generic term for a loan secured by such real property.Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably.

The lender's rights over the secured property take priority over the borrower's other creditors which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first.

Governments usually regulate many aspects of mortgage lending, either directly (through legal requirements, for example) or indirectly (through regulation of the participants or the financial markets, such as the banking industry), and often through state intervention (direct lending by the government, by state-owned banks, or sponsorship of various entities).