Elements of a mortgage versus bank financing


 Elements of a mortgage versus bank financing


Elements of a mortgage versus bank financing

In this article, we will detail the components of a mortgage against bank financing, because this topic is of great importance for those who wish to obtain real estate financing, but the latter can only be achieved through a mortgage. We will also stop to refer to the concept of a home mortgage.

So, what are the foundations and components of a mortgage versus bank financing?

Mortgage has a legal form based on consensual basis, which enables the transfer of the right of ownership of assets or real property from its original owner to the borrower as a security in return for obtaining the loan, all this in return for the interest of the original owner being recorded in the property document record and it is canceled when the loan is fully paid The buyer may not sell the property until after the payment or completion of the mortgage, and it is also known that any property can be mortgaged and a seizure order can be obtained from the court to sell it if the borrower fails to pay, and the mortgage must be a specified period of time and the mortgagee has the right to recover upon payment loan amount.

Conditions to be provided in the mortgage contract

Through the content of Article 175 of the Code of Rights in Kind regarding the basic conditions that must be met in the official mortgage contract under penalty of being considered invalid, as it stated the following: The validity of the official mortgage contract must include the following: – the identity of the parties to the contract; Determining the mortgaged property by indicating its name, location, area, contents, and the number of its real estate drawing or the request for its memorization; A statement of the amount of the debt secured by the mortgage and the period specified for its payment.

Based on the content of the above-mentioned article, it becomes clear that among the elements that govern the existence of the validity of the mortgage and that fall within the official mortgage contract, the identity of the parties involved in the contract, as well as the allocation of the mortgaged property and the allocation of the debt secured by the mortgage. Concerning the identity of the parties, i.e. the mortgagee creditor and the mortgagor debtor, it must be obligatory to be included in the contract so that the people of the capacity and the interest in confronting third parties can be known when every dispute is raised.

With regard to the allocation of the mortgaged property, it is intended to determine the funds included in the official mortgage, and the importance of this determination is reflected in practical terms in knowing the limits of the mortgage granted to the mortgagee, and thus includes the mortgaged property and its annexes and all the construction or improvements that will happen in it after the contract.


What is a home mortgage?

The mortgage is based on a bank loan delivered by the finance company with the aim of buying a basic or investment housing. The home mortgage has either a fixed or variable interest rate, and it is paid every month, and since the home owner pays the capital over time, mortgages allow citizens the opportunity to own real estate, which is One of the most common forms of debt, mortgage loans come with somewhat lower interest rates than other types of debt and range from 10 to 30 years. There is more than one type of home mortgage loan, but the two most common types are as follows:

You can also mortgage and buy a car

Fixed rate mortgage: The interest rate and periodic payment are generally the same throughout the period.

Adjustable Rate Mortgage: The interest rate and periodic payment varies and changes.

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