A mortgage is not actually a loan, it’s really a lien. According to the dictionary, a mortgage is:
1. a conveyance of an interest in property as security for the repayment of money borrowed.
2. the deed by which such a transaction is effected.
3. the rights conferred by it, or the state of the property conveyed.
This means that the lender who provided the money, in the form of a loan, has interest in the property and holds a mortgage in order to secure their loaned money. If you don’t pay the loan, their mortgage gives them the ability to recover the money by legal means. So the mortgage is a legal document.
Rick Cogswell • Fort Lauderdale Mortgage Specialist • 954-734-4440
Your goal should be to pay off the loan as quickly as you can so you can get rid of the mortgage. People used to have mortgage burning parties where they would gather friends and family and literally burn the paper. In reality, you don’t really want to do that because once the mortgage is satisfied by paying off the loan, it will be stamped as “PAID” and you’ll want to hold on the that piece of paper.
The word used to describe “paying down” a loan balance is “amortize.” If you are a wordsmith you may identify the Latin root “mort” which means to kill. The French have a word amortir which means to reduce to the point of death.
So, you want to kill your loan balance! When you do, the monthly payments stop and you own your house. Just you, no more bank.
Because a loan amortizes, and property values tend to go up, every time you make a mortgage payment you are securing a stronger financial future for you and your family. This is why we encourage people to buy, and not rent. Call me an I can prepare some numbers that will show how far ahead you will be in just a few years if you stop renting and buy your next home.
I also handle second home purchases, vacation home loans, and re-finance loans to put you in a better place financially.
My number is 954-734-4440 and I’m available 7 days a week.