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The term “mortgage” is French in origin. It means “dead pledge”, suggesting that the pledge or liability dies at the fulfillment of the obligation or the re-possession of the property in case of default. A “Mortgage loan” is actually that loan which is secured by the property, using a “mortgage note” which is a proof of its being. This note has terms and conditions with the option of repossession of the property in case the mortgagor’s default. These days the term “mortgage” is frequently used in place of “mortgage loan” Any person who intends to buy a loan for the purchase of the property or secure against it, can get the loan from different financial institutions such as banks. This loan can be obtained directly or with the help of brokers. The other characteristics of the mortgage loans like the interest rates, size of the loan, maturity, pay off methods etc. may vary. Basis of loan variation from place to place: There are a variety of mortgage loan types available in different countries owing to the different legal regulations. The following features of the mortgages are the basis of difference: Rate of interest can be low or high. It may be fixed or may vary with the time which is predefined. Consequently we have fixed rate and adjustable or floating rate mortgage. * Term or duration of the loan also varies, leading to different types. * Payoff methods, repayment amount and their frequency also vary from country to country. In many countries a particular type of loan becomes the only type of mortgage loan. For Example, in USA floating loan mortgage is normally practiced. Someone is looking for a mortgage loan; he has to meet any lender. Suppose he meets Mortgage lender Cincinnati, to discuss the loan. Without mentioning the type of loan, he will be given information related to Floating rate mortgage only. Mortgage Process in USA: In USA, the process of securing a loan by the borrowers is called is called origination. The process involves submission of the loan application and the documents of his financial history to be reviewed by the financial institution directly or, sometimes, a third part is also involved. This process is controlled by laws like “Truth in Lending Act” and “RESP Act of 1974” in addition to other regulations. The type of financial history determines which category the applicant falls into. Each category has different rates of interest and terms and conditions. Loans given can be prime, subprime, NINJA etc. USA Mortgage Brokerage These act as a third party to assist and guide in the origination of loans or securing a property loan. As per the research of WAM research and consulting, the number of brokerage companies in USA is around 55000, which are involved in brokerage of mortgage. These employ more than 418700 employees. Their involvement in origination of 68% of the house loans shows their influence in the business. There are a lot of regions where a lot of brokerage houses have done a great job like in the Ohio State especially mortgage brokers Cincinnati. This is regulated by ten federal and around fifty state laws. These brokerage houses have played a great job in increasing the business of the banks. Additionally, they have successfully outsourced the job of finding the financial background of the people and have also helped the financial institutions in the application of laws at the time defaults. Securing loan against the property is the effective way of purchasing a property. In developed countries like USA, where the mortgage loan is an essential part of the economy, mortgage brokers like mortgage brokers Cincinnati have played a great role in increasing the business many a times.
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