The Short Definition Of Mortgage

You must often to hear the word “mortgage”, but you may still don’t know about its meaning. It’s actually related to the real estate business. The mortgage is a method of payment that you can choose if you and the other part agree to use it to pay your debts or receive your credits. It’s an alternative way to pay your debts or receive your credits, which is mostly isn’t using the real money.

The way it works is by letting the lender to use the property which is owned by the borrower, in order to pay the debt. The lender has been allowed by the property owner to use the property according to his own will until the debt has been paid. The time when the lender uses the property will be valued at the property rent prices, and it will be returned to the owner after the debt has been paid, according to the calculation of the property rent. As along as both of the parties have agreed, the borrowers can pay the debt while he is also able to save more money, while the borrower is allowed of using the property at the same time.