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What is Mortgage Loan?
A mortgage loan is a loan secured by real property through the use of a
document which evidences the existence of the loan and the encumbrance of
that realty through the granting of a mortgage which secures the loan.
However, the word mortgage alone, in everyday usage, is most often used to
mean mortgage loan.
A home buyer or builder can obtain financing (a loan) either to purchase
or secure against the property from a financial institution, such as a
bank, either directly or indirectly through intermediaries. Features of
mortgage loans such as the size of the loan, maturity of the loan,
interest rate, method of paying off the loan, and other characteristics
can vary considerably.
In many countries, though not all (Iran and Bali, Indonesia are two
exceptions), it is normal for home purchases to be funded by a mortgage
loan. Few individuals have enough savings or liquid funds to enable them
to purchase property outright. In countries where the demand for home
ownership is highest, strong domestic markets have developed. from
http://en.wikipedia.org/wiki/Mortgage_loan
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