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Mortgage


Essentially the concept of a mortgage pertains to the security against land for money that is owed (or loaned). The mortgage is not the debt, but rather the security for the party that the money is owed to, for instance a bank. As soon as the conditions of the loan or agreement between a borrower and lender of money are met then the mortgage is cancelled and all rights are returned to the rightful owner of the property that served as security.

The mortgage is used most often by individuals and companies to obtain real estate, once the loan and all interest has been paid then the rights and ownership of the real estate revert to the individual or company that purchased the real estate. The most common practice of obtaining a mortgage is based on the fact that individuals and companies want to obtain home or building and property ownership.

There are different rules and conditions in the individual and commercial mortgage options and practices. There are a number of different measuring factors that financing institutions may use to measure the value of the real estate and resulting loan; and in most instances the APR or Annual Percentage Rate plays a key role in these calculations and determinations of loan amounts, values and so forth.