History of Home Mortgages

Article submission by: Columbia Mortgage Place | Your Place for Mortgages in Columbia SC

Columbia mortgageHome Mortgage is one of the forms of loans that have been helpful in so many ways. There are many people who do not have any idea of what a mortgage loan is and what history it has. The home mortgage is a form of loan that is being given by banking institutions or other financial institutions for investment residence. In every home mortgage, the property owner will transfer the title to the lender with the condition that the title will be transferred again into the owner once payment has already made and other terms for the mortgage has been met.

The home mortgage has also a long history. Mortgage, as stated in the country of England the word comes the Latin word mort which means death and the gage words means a pledge of forfeiting something in value if the debt will not be paid. The mortgage literally means dead pledge. This is considered as dead for only two reasons- it is s because the property was being forfeited or dead to the lender once it was not paid and it is dead if the pledge of the loan was repaid.

Before, the mortgage loan was only limited. Only fifty percent on the market value of the schedule of repayment was spread into three up to five years and it has ended in an instant payment. During later time, an eighty percent of the loan was meant as your down payment of eighty percent that is not the amount that you have already financed. Such term is the reason why most Americans at the later times were the renters.

The FHA which is also called as Federal Housing Administration had started a program that has lowered down the requirements for payment. They are the one to set up programs that offers eighty percent of loan-to-value or also called as the LTV and higher of this LTV. This is the program that forces the commercial banks and other lenders to have the same thing. It creates many opportunities for average numbers of Americans to have their own home.

The Federal Housing Administration has also started trend for people to be qualified for the loans depending upon their capability to pay the loan. It is unlike of the traditional way that is about knowing someone before getting the loan. The FHA is the main reason why the Home Mortgage has been established and lengthened until today’s generation. The traditional way of five to seven years of paying the loans has been changed into fifteen years and has expanded more the years of 30 years that is the current years for the loans today.

The Home Mortgages has been improved as the years are passed by. All of the things that the mortgage loan is said to be very helpful for helping people to have homes and other loans that is always essential for people. Knowing the history of home mortgages may always be helpful for you to know why people are having secured shelter through this mortgage loan. Without home mortgage there is a possibility that people will be in the difficult situation.