Mortgage, Refinance, Home Loan, Real Estate, Home EquityMortgage - is a financial scheme to own a real property in absence of the real money to pay for it now on the condition that the value of property at the existing market rate (like an expensive house) will be paid off later in installments along with the monthly interest.
Any borrower qualifies for the mortgage (or mortgage loan) from a lender only if the borrower has excellent credit in the market.
Thus, mortgage is a written legal document that provides a property to the lender as security for payment of a regular debt with interest (evidencing the lien / claim on a property as collateral for the loan).
The mortgage payments include escrow amounts covering taxes, hazard insurance, water charges, and special assessments. Mortgages run from 10 to 30 years, during which the loan has to be paid off.
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These factors influence the Rate of Mortgage -
amount of loan, length of loan, adjustable rate, down payment, discount points, closing costs, credit quality, income level, lock in period.
Basically, mortgage is a loan from from a bank or money lender to finance the buying of real estate, taken out over a 25 year period with a fixed rate of interest over that time period.
Refinance - is a financial scheme to pay off one loan with the funds from a new loan using the same property as the debt security by the original mortgagor.
Thus, refinance is paying off an old loan while simultaneously taking a new one to reduce borrowing costs under conditions where the borrower can obtain a new loan at an interest rate below the rate on the existing loan or to raise cash, as an alternative to a home equity loan or to reduce the monthly payment on the housing mortgage.
Home Equity Loan - is a financial scheme to avail a loan in the real estate property that is used to secure or guarantee the amount borrowed. Also, referred to as a second mortgage or borrowing against your home. It is used for home improvements or to pay for a new car. The home equity loan is a good way to borrow money for two main reasons. First, the interest rate is usually one of the lowest loan rates a borrower can get. Also, the interest you pay on the loan is usually tax-deductible.
Home loan is a much larger purchase than your home.