Many people have heard that there are a lot of changes taking place in the real estate market right now. As a result, a lot of people 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? There’s actually comes from an old French word. In French, it was spelled “Mort Gaige,” which stands for deal 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. This includes Scotland. 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 people have heard a Fannie Mae and Freddie Mac. These two entities combine two back 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
Many people have to go with paying off their mortgage and owning their home outright. This is a great goal to have; however, many people purchase mortgages that are 30 years in length. Therefore, it should come as no surprise that the vast majority of homeowners depend on mortgages for just about every home purchase.
Mortgages Have An Interesting History
Mortgages have an interesting and unique history behind them. As the market continues to pick up, it will be interesting to see what happens next.