Mortgage meaning - Mortgage interest rates - Mortgage lender

We learned about the basics of mortgage. and we saw how many types of mortgage loans are there in India. And in this post I will talk to you about types of mortgages. 

In how many ways a mortgage can be created. we will also see some examples of how each type of mortgage can be created. So you must watch this Article from beginning to end. So that you do not miss the important points.

Mortgage Meaning and Type of Mortgage ?

This is clearly defined under the Transfer of Property Act 1882. Section 58 defines mortgage, mortgagor, mortgagee, mortgage money and mortgage-deed. Now, before we come to the exact definition, let us first understand the concept of mortgage. 

What is the concept of mortgage? Let's try to understand with an example, Suppose this is a property, let's say the owner has some loan requirement, some money is required, he goes to a bank or goes to any individual, which we call a lender. 

So now whoever the lender is, The bank or lenders will sign an agreement before paying the money which is called as mortgage deed. Or it can also be called a loan agreement. After that this lender will give the money to him.

What is mortgage interest definition? Mortgage interest rates .

Basically, I am writing here as the principle. the bank or lender will give the main amount to the owner. and he who is the owner of this property, will promise the bank to return the money within the mortgage deed. That I will repay the principal and interest portion as much as is due to the banks for which time he has taken the loan. So in return, there is a risk for the bank.

 So, that is why bank will mortgage this property. the bank will give him a loan against this property, if something happens during this time, due to any reason, he is not able to pay the loan, then the bank will sell this property. The bank can recover the loan.

So, this is all information mentioned under section 58. Let's try to read and understand it. A mortgage is the transfer of an interest. It is clearly written here, whichever the important terms are, of an interest means a right is transferred. 

How Do I Find the Best Mortgage Rate?

Ownership is not transferred here in specific immovable property. So. it means that any property against which a loan is being taken, whichever property is being mortgaged, the bank can recover the loan only by selling the particular property. Let's say this owner has 5 properties. So the bank has no right on the remaining 4 properties. The bank cannot touch those properties. 

So, that's why this specific immovable property is clearly mentioned in the mortgage deed. for the purpose of securing the payment of money advanced or to be advanced by way of loan It means that the bank is securing the money which is given as loan.

Now, what could this money be? an Existing or Future Debt. Either bank has already given loan, Bank has already given current loan, The property is mortgaged to recover this loan. Then suppose you have kept this property as a mortgage. 

So against the same property, if he wants to take a loan in the future, Still, the property can be mortgaged. or the performance of an engagement which may give rise to a pecuniary liability.

Who is the lender in the mortgage? Mortgage Lender

Right now, it is not necessary that the liability is against loans only. Any other legal obligation of any kind is made to this particular Owner. Monitor Obligation. Pecuniary liability means the legal monetary obligation, is to give money to the lender. 

Even then, mortgages can be created in this way. So I think here you have clearly understood the concept of mortgage.

So this Owner is your mortgage. the transferee is a Mortgagee. So, now the interest is transferred to the lender. the rights are transferred to the lender. He became Mortgagee. the principal and interest of which payment is secured for the time being, are called the Mortgage-money. This means that the owner has promised that I will return both the principal and interest to you. 

Mortgage money is the combination of both the principal and the interest. Here you do not have to be confused; 

Here we are not talking only principal; both principal and interest are recovered by selling the house or whatever is a movable property. Then both principal and interest are combined into mortgage money. and the instrument by which the transfer is effected is called a Mortgage deed.

Any property is mortgaged. If there is some addition in it; Suppose, you have built a house on top of an empty land. Or you had two rooms already made and you made two more. so what happens in such a case. If, after the date of mortgage, any accession is made to the mortgaged property.

How do interest rates work on a mortgage?

The mortgagee who is the lender. in the absence of a contract by the contrary, shall, for the purposes of the security, be entitled to such accession. This means that whatever accession has been done will also be a mortgage. 

So if we take this example, Suppose, this owner has a land. and suppose he had taken a loan on it. and after taking the loan, he builds a house on it. Then the interest will be charged on the land, as well as the interest on this house. and the interest will be right of the bank.

By selling the entire house, the bank can recover the loan. It means the bank can make a recovery by selling both the land and the house. So, you should know about this. So, this were the important clauses related to Mortgage.