MORTGAGE-THE.COM

A mortgage is not a loan. A mortgage, or deed of trust in some states, is the security instrument that creates the lien against the real estate. The loan is created by the note, sometimes called the promissory note. A mortgage promissory note is a promise to pay... An adjustable rate mortgage means the interest rate that the borrower pays can go up or down. It is usually fixed to a certain index, like the 10-year treasury bond index plus a certain percentage. Adjustable rate mortgages usually have a cap on the maximum annual increase and the total increase in interest rate possible. While not common in the USA, many countries, such as the UK only have adjustable rate mortgages... A Sub-prime mortgage is available if your credit is not so good. The interest rate is higher with a sub-prime mortgage to compensate the lender for the extra risk they are taking.