Mortgage originated from the Latin words "MORTUUS" meaning death and "GAGE" meaning pledge. A mortgage is a loan used to purchase a property, with the property serving as collateral. If the loan is not repaid, the lender can foreclose on the property. There are several types of mortgages including simple, English, reverse, and usufructuary mortgages. Key mortgage terms include adjustable-rate mortgages where interest rates fluctuate, short sales where the property is sold for less than owed, and closing costs which are fees paid at the completion of the real estate transaction.

1. Mortgage

2. Origin-
Mortgage came from the lattin word "MORTUUS". Mortuus word is made from two Old French
word-"MORT" + "GAGE" which has hindi meaning"BANDHAK".

3. Mortage-
 When you agree to a mortgage, you're signing a legal contract promising to repay the loan
plus interest and other costs. your home is collateral for that loan. if you don't repay the
debt, the lender has the right to take back the property and sell it to cover the debt, a
process known as foreclosure
 A legal agreement by which a bank, building society, etc. lends money at interest in
exchange for taking title of the debtor's property, with the condition that the conveyance of
title becomes void upon the payment of the debt
 At its most basic, a mortgage is a loan used to purchase a house.

4. Types of MORTGAGE-
1-SIMPLE MORTGAGE-
A simple mortgage is a transaction whereby ‘without delivering possession(ownership or
occupancy) of the mortgaged property, the mortgagor binds himself personally to pay the
mortgage money and agrees, expressly or impliedly, that in the event of his failing to pay
according to his contract, the mortgagee shall have a right to cause the mortgaged property to
be sold by a decree (an order of law) of the court in a suit(a case in a law court)

5. 2-ENGLISH MORTGAGE-
 The borrower promises to repay the borrowed money on a certain date. The borrower
transfers the property to the lender. The lender will re transfer the property when the money
is repaid. The mortgaged property is absolutely transferred to the mortgage.
 Where the mortgagor binds himself to repay the mortgage money on a certain date, and
transfers the mortgaged property absolutely to the mortgagee, but subject to a proviso that
he will re-transfer it to the mortgagor upon payment of the mortgage money as agreed, the
transaction is called an english mortgage.

6. 3-REVERSE MORTGAGE-
A reverse mortgage is a loan where the lender pays the monthly installments to the borrower
instead of the borrower paying the lender. The payment stream is reversed. A reverse mortgage
allows people to get tax-free income from the value of their home. They are mainly to improve
older people's personal and financial independence.
4-USUFRUCTUARY MORTGAGE-
The lender takes the property. the lender receives income from the property (rent, profit,
interest, etc.) until the money is paid back. The owner keeps the title deeds

7. Mortgage Key Terms-
1-ADJUSTABLE-RATE MORTGAGE (ARM)-
 An Adjustable-Rate Mortgage is a real estate purchasing loan with interest that changes
periodically. The initial interest rate is lower than that of a fixed-rate mortgage, but rates
generally increase over time. ARMs are beneficial when interest rates are expected to drop.
Also, you might use an adjustable-rate mortgage if you plan on paying off your mortgage
quickly. Make sure your income can withstand an increase to your mortgage payment so you
aren’t blind-sided if interest rates jump
 The interest rate for an Adjustable-Rate Mortgage contains two parts: An index, which is
used as an interest rate benchmark, and a margin, which is what the lender adds to that rate.
According to the federal reserve, the initial rate and payment amount on an ARMs are
effective for a limited amount of time and then the rate can change monthly, quarterly, yearly,
and every three or five years.

8. 2-SHORT SALE-
 A short sale is when lenders allow homeowners to sell their houses for less than the total
amount that they owe on their mortgage. In return, the lenders accept the proceeds from the
sale. The exact terms depend on the lender, and lenders sometimes forgive the difference. It
is in the lender’s interest to approval a short sale because it allows lenders to avoid the
unpleasant foreclosure process.
 A short sale in itself is a risky and tricky process. You won’t be able to completely walk away
from your mortgage. You may still owe taxes on the difference even if your lender lets it slide.
One perk of short sales is that they don’t damage your credit report as much as foreclosures.
Short sales typically have shorter timelines, which means your credit has the chance to
improve quicker

9. 3-CLOSING COSTS-
 Closing costs are the additional expenses necessary to complete a real estate transaction.
Thanks to the real estate settlement procedures act (RESPA), your mortgage lender must
give you what is called a “good faith estimate” of all your closing costs within three business
days of the submission of your loan application..
 Closing costs can be classified as recurring and nonrecurring. Recurring costs are paid at
closing and continue on a monthly basis. These include real estate taxes and homeowners
insurance. There are also many nonrecurring costs that pop up during the closing. These
may include an application fee as well as a collection of loan fees for things like credit
reports, tax services and document preparation. Your lender may require a home inspection
and a home appraisal. If you used a broker, you will have to pay his or her service fee. A
HUD-1 form includes a breakdown of all your closing costs, and you can see it 24 hours in
advance of your closing, so it is a good idea to compare your good faith estimate with the
actual total.

10. 4-EQUITY-
 Equity is the value of an asset less the value of all liabilities on that asset.
Equity = Assets – Liabilities
 A stock or any other security representing an ownership interest. This may be in a private
company (not publicly traded), in which case it is called private equity.
 On a company's balance sheet, the amount of the funds contributed by the owners (the
stockholders) plus the retained earnings (or losses). Also referred to as shareholders' equity.
 In terms of investment strategies, equity (stocks) is one of the principal asset classes.

11. Conclusion-
 At its most basic, a mortgage is a loan used to purchase a house.
 There are two primary types of mortgages: fixed rate and variable rate.
 A fixed-rate mortgage is a loan that charges a set rate of interest that typically does not
change throughout the life of the loan.
 Fixed-rate mortgages enable buyers to spread out the cost of paying for an expensive
purchase by making smaller, predictable payments over a long period of time.
 A variable-rate mortgage, also commonly referred to as an adjustable-rate mortgage or a
floating-rate mortgage, is a loan where the rate of interest can change over time

12.  Variable-rate mortgages are significantly more complex than their fixed-rate counterparts
 A monthly mortgage payment consists of a series of underlying components that include
principal, interest, taxes and insurance.
 In addition to the money required to cover the mortgage, obtaining a mortgage often requires
a substantial amount of money to cover the down payment and closing costs