Mortgage Loan

Definition

A Mortgage Loan is a subclass of Loan Or Credit, in turn a subclass of Financial Product. A loan in which property or real estate is used as collateral. (A loan securitized against some real estate.)

For discussion of Credit Risk characteristics look at the Mortgage article.

Properties

• Domiciled Mortgage: Whether borrower is a resident of the jurisdiction where the property is located.
• Loan Term: The duration of the loan or credit agreement.
• Loan Type: The type of a loan or credit.
• Amount: The amount of money.
• Grace Period: The period of time after any due date that the borrower has to fulfil its obligations before a default (failure to pay) is deemed to have occurred.
• Currency: The currency in which the monetary amount is expressed (in 3-letter ISO 4217 format).
• Loan Repayment Form: A form of paying back money previously borrowed from a lender. Repayment usually takes the form of periodic payments that normally include part principal plus interest in each payment.
• Recourse Loan: The only way you get the money back in the event of default is the security. Recourse is where you still have the opportunity to go back to the borrower for the rest of the money.
• Renegotiable Loan: Whether the terms for payment of interest can be renegotiated during the life of the loan.
• Required Collateral: Assets required to secure loan or credit repayments. It may take form of third party pledge, goods, financial instruments (cash, securities, etc.)
• Annual Percentage Rate
• Interest Rate
• Fees And Commissions Specification

Service Domain

Fulfillment of a loan product for the purpose of property purchase.

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