The Basics of Mortgages
Mortgages are loans that enable someone, meaning you, to pay off something like a property in real estate. You need a lender in the form of a financing company like a bank who will allow you to purchase a property using the money that they loan out to you. They will record your loan or your mortgage into their client list as well as the local county office.
You will have to pay off a certain interest rate that would be determined by the lender and which you will agree to pay for every month. You will also need to pay an amortization every month which should last from five years to thirty years, depending on what you applied for or what has been granted by the bank.
There are thousands of mortgages out there, but the bottom line is, you owe a debt which you have to pay the monthly amortizations which would be directed as payments to the principal loan that you had taken. The loan will gradually reduce as the years approach the maturation date.
Most of the mortgages today are fixed rate, this means that you get to pay the same amount every month for as long as the term of the mortgage that you had agreed with the lender. If it will take thirty years to pay off the loan or the mortgage then you will pay the same amount for thirty years.
Now, if you cannot continue to pay the amount for one reason or another, the lender will not automatically foreclose on you. What you need to do is to contact the lender and ask for an adjustment on the payment terms. Normally, the bank will agree to the adjustment for they would rather do this than risk your non-payment and the legal costs they would have to shell out for the foreclosure proceedings. They would also do this to prevent foreclosure for they do not want to risk holding the deeds of properties where they do not receive any income from and which they could not easily sell in this day and age.