What is a Mortgage?

Written by John Mussi


A mortgage is a loan, usually from a bank, finance company or building society to help you buy your home.

A mortgage is a loan, from a bank or building society that is secured against your house or flat. You have to pay back everything you borrow from your lender within an agreed length of time (the mortgage term). You also have to pay interest on what you have borrowed.

A mortgage is a loan you take out to buy property. Most banks and building societies offer mortgages, as well as specialist mortgage lending companies.

To repayrepparttar mortgage you either make monthly repayments of interest and capital, or you pay interest only each month then repayrepparttar 141938 loan atrepparttar 141939 end ofrepparttar 141940 mortgage term from separate savings or investments.

The purpose of a mortgage is, quite simply, to enable a person to borrow money usingrepparttar 141941 property as security. Asrepparttar 141942 prices of houses are beyondrepparttar 141943 immediate personal resources of most purchasers, it is necessary to enter into a borrowing agreement with a lender.

A mortgage is therefore a form of a secured loan, wherebyrepparttar 141944 lender agrees to lend a personrepparttar 141945 money to enable them to purchase a property. This loan is secured againstrepparttar 141946 property by a legal charge and is subject torepparttar 141947 purchaser andrepparttar 141948 property being able to meetrepparttar 141949 lender's criteria. This loan is then paid back over a period of time along withrepparttar 141950 interest charged byrepparttar 141951 lender.

In most cases lenders will offer three times a single person's salary or two-and-a-half timesrepparttar 141952 borrowers' joint salaries. However you should consider whether your budget can affordrepparttar 141953 repayments before borrowing torepparttar 141954 hilt.

A mortgage is a long term financial commitment with repayments typically spread over a term of up to 25 years. However in practice, people often sell their house beforerepparttar 141955 end ofrepparttar 141956 mortgage period. The original loan is then repaid fromrepparttar 141957 sale ofrepparttar 141958 first house and a new loan is taken out to buyrepparttar 141959 new home.

Guide to Life Insurance Terms

Written by John Mussi


Listed below is a useful guide to life insurance terms. It is a list of definitions of life insurance terms that may or may not be familiar to you.

Accelerated Benefit Provision

A provision in many new policies which will allowrepparttar policy owner to receive a portion ofrepparttar 141937 death benefit early ifrepparttar 141938 insured person is diagnosed with a terminal illness or permanently confined to a nursing home.

Accidental Death Benefit A provision added to a policy that provides an additional benefit ifrepparttar 141939 insured dies from accidental causes.

Certificate

A document provided to a person insured under a group insurance policy that provides evidence thatrepparttar 141940 coverage exists.

Convertible Term Insurance

These policies allow conversion, without further medical evidence, to a different type of policy from an insurance company's range.

Decreasing Term Insurance

The sum assured decreases each year throughoutrepparttar 141941 term ofrepparttar 141942 policy.

Dependent protection

Whererepparttar 141943 protection is required on a permanent basis rather than just for a specified term.

Evidence of Insurability

Medical and other information about a person applying for insurance thatrepparttar 141944 life insurance company keeps confidential, but uses to decide whetherrepparttar 141945 policy can be issued and what premiums will be charged.

Face Amount

The amount to be paid torepparttar 141946 beneficiary whenrepparttar 141947 insured dies.

Free Look

The right ofrepparttar 141948 policy holder to have a period of ten or more days to examine an insurance policy, and if not satisfied, return it torepparttar 141949 company for a full refund of all amounts paid.

Grace Period

A period of time afterrepparttar 141950 premium due date when an overdue premium may be paid without penalty. The policy remains in force throughoutrepparttar 141951 period.

Guaranteed Insurability

An option that permitsrepparttar 141952 policyholder to buy additional stated amounts of life insurance at certain times inrepparttar 141953 future, without having to provide new evidence of insurability.

Illustration

A document used in life insurance sales presentations showing year-by-year numbers indicating how a policy will work.

Increasing Term Insurance

Under this option,repparttar 141954 benefit payable on death increases and is particularly useful to avoidrepparttar 141955 sum assured being eroded by inflation.

Insured

The person whose life is covered by a life insurance policy.

Lapse

The discontinuation of insurance without cash value whenrepparttar 141956 required premium is not paid.

Level Term Life Insurance

In this form a policy will pay out a fixed sum on death duringrepparttar 141957 term.

Loan Value

The amount which can be borrowed byrepparttar 141958 policy holder fromrepparttar 141959 company usingrepparttar 141960 value ofrepparttar 141961 policy as collateral.

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