Many people have heard of the changes taking place in the real estate market right now. As a result, home buyers are thinking about purchasing a new home or refinancing an existing mortgage.
When looking at a mortgage, many people focus on the interest rate, the term of the loan, and the size of the loan. Even though these are all important factors to consider, it might be helpful to take a look at a few fun facts about mortgages as well.
Where Did The Word Come From?
When people take out a student loan, a car loan, or a personal loan, that is exactly what they are called. Why is a home loan called a mortgage? It actually comes from an old French word. In French, it was spelled “Mort Gaige,” which stands for dead pledge. Then, when the mortgage was paid off, it was deemed “dead.” This word has carried over into the modern era.
The Red Door In Scotland
Mortgages are used to provide people with home loans all over the world. When homeowners are finished paying off their home loans in Scotland, they paint their door red. For those who plan on traveling to Scotland in the near future, it may be fun to keep an eye open for these red doors.
Fannie Mae And Freddie Mac Combine For The Majority Of Mortgages In The United States
Most have heard of Fannie Mae and Freddie Mac. These two entities combine of close to half of all mortgages in the United States. Therefore, they play a major role in helping people finance their homes.
Homeowners Depend On Mortgages For Almost All Home Loans
There are many people who pay off their mortgage and own their home outright. This is a great goal to have; however, many purchase 30 year mortgages. Therefore, it should come as no surprise that the vast majority of homeowners depend on mortgages for just about every home purchase.