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Main Coastal Mortgage

A mortgage is a way to use one's real property as a guarantee for a loan to get money. The debtor or mortgagor is the owner of the property, while the creditor or mortgagee is the owner of the loan. When the mortgage transaction is made, the debtor gets the money with the loan, and promises to pay the loan.

Mortgage FAQ

What's The Difference Between A Loan And A Mortgage?

Mortgages are “secured” loans. With a secured loan, the borrower promises collateral to the lender in the event that they stop making payments. In the case of a mortgage, the collateral is the home. If you stop making payments on your mortgage, your lender can take possession of your home, in a process known as foreclosure.

How does a mortgage loan work?

Most people who buy a home do so with a mortgage. A mortgage is a necessity if you can't pay the full cost of a home out of pocket.

Is it wise to pay off mortgage early?

The Home Is Your Asset

Although the home loan is a liability, the home itself is generally considered an asset to the borrower. The lender maintains a lien on the property, but you are considered the owner of the home as long as you remain current on your mortgage and other obligations, like property taxes.

Here's a primer on some of the most common types of mortgages.

• Conventional mortgages. A conventional mortgage is a home loan that's not insured by the federal government.
• Jumbo mortgages.
• Government-insured mortgages.
• Fixed-rate mortgages.
• Adjustable-rate mortgages.