Mortgage Loan Definition

In order to know the meaning of the term mortgage credit, it is necessary, first of all, to discover the etymological origin of the two words that give it shape:

-Credit, first of all, comes from Latin. Specifically, it emanates from the verb “credere”, which can be translated as “to believe”. However, there is another theory that establishes that it derives from the Latin expression “certum dare” that would come to determine what it means “to give the truth”.

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-Mortgage, secondly, derives from the Greek. In his case, from “hypotheke”, which is the result of the sum of two clearly differentiated components: the prefix “hypo-”, which is synonymous with “under”, and the noun “theke”, which can be translated as “deposit ” or “box”.

A credit is a loan that a subject or an entity grants to someone, establishing certain conditions for its subsequent repayment. Mortgage, on the other hand, is what is linked to a mortgage : a guarantee right that encumbers a material asset –usually a property– subjecting it to responding to the fulfillment of a certain obligation.

The mortgage loan, therefore, is the one granted by a bank for the acquisition of a home or land, leaving the institution with the right to force the sale of said property to settle the debt in the event that it is not satisfied. as agreed.

Suppose a man goes to a banking institution to apply for a mortgage loan that allows him to buy a house. The bank, after carrying out the rigorous analysis, grants him a bank loan of this type to be paid in 20 years. The person, in this way, acquires the house, which is mortgaged by the bank (the property remains as collateral for payment of the loan). If, once the term has expired, the debtor pays the total amount of the debt, the mortgage is lifted and the bank no longer has any right to the house. On the other hand, if the person does not comply with the conditions of the mortgage loan, the banking institution will have the right to execute the sale of the property and thus obtain the necessary money to cancel the debt.

In order to apply for a mortgage loan, it is important that the person in question, first of all, review the requirements that are considered essential and even with other aspects that must be taken into account. We are referring to issues such as the following:

-Age is an aspect to take into account and you must be a minimum of 18 years old and a maximum of 64 years and 11 months.

-No less relevant is that it is essential to have a good credit history. By this we mean if previous credits have been paid as well as credit cards, for example. And it is that if the person obtains a good “score” in this aspect, he will know that the credit will be granted.

The granting of a mortgage loan implies the establishment of an onerous contract (generates obligations and economic benefits), unilateral (the debtor is obliged to transfer the mortgage right to the creditor as collateral), accessory (the main obligation is the loan) and nominee (it is regulated by law ).