Basic Terminology On Mortgages

Basic Terminology On Mortgages

Terms To Help You Understand The Process better

All of the financial and legal terminology that has to do with getting a mortgage on your home or making any other bigger financial decision can get a bit confusing. And if we don’t understand everything, chances are we can make a bad decision. So we’re going to try to explain a few of those terms.

One of the first ones that you should know is Equity Release, which means continuing to use your home while also getting a certain amount of money for it. After you die, the income provider has to repay, or the home will be sold and the mortgage will be paid off that way. Another term you should know is an appraisal, which is a written estimate of how much your home is worth. This is something you have to give to the bank when you are applying for a mortgage.

Equity Release

One more term that is is frequently talked about as well is escrow, which is basically a contract in which a third party, which is normally an agent, receives and disburses money on your part. They are basically a connection between two parties. These terms, including Equity Release, are important when making a decision because they help you know whether or not this is the best thing you can do.

Of course, you don’t have to learn all the terminology because that’s what legal help and lawyers are there for. However, understanding the basic terms can help you understand everything better and reach a better decision.