The process of obtaining a mortgage can be daunting and time-consuming. However, for the amount of work involved – the reward in getting your mortgage pays off in the end. We’ve compiled a few fun facts about the mortgage process to give yourself a break from the daily grind. Read on!
‘Till Death Do Us Part
The word “mortgage” originates from the old French words “mort,” meaning dead, and “gage,” or pledge. Your “dead-pledge” will cease to exist (read: die) once you pay it off, hence the name.
What’s with Red?
If you’ve ever been to Scotland, you might have noticed an excess of red doors. Traditionally, when a homeowner paid off their mortgage, they paint their front door red. Seen as a sort of announcement, the bright color is noticeable to passersby.
In the United States, we have our own version of the quirky home exterior tradition. When a homeowner became debt-free, a winged eagle plaque was placed over the front door. While this tradition has already peaked, some homes still bear the metal remnants.
30-Year Mortgages are New
Before the Great Depression, mortgages had short maturity times and usually required a significant down payment. According to “The American Mortgage Historical and International Context,” pre-Depression mortgages had variable interest rates and were negotiated yearly.
In some countries, mortgages can be taken out for a higher home valuation. In the United States, the maximum value of a mortgage is 97- to 100 percent of the home’s valuation. In the Netherlands, borrowers can take out loans for as much as 115 percent of the home’s value; in the United Kingdom, they can borrow up to 110 percent.
To learn more information regarding a home or commercial mortgage, contact the experts at EB Mortgage today.
EB Mortgage is a locally-owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail email@example.com today.