The modern real estate market can not exist without such banking instrument as a mortgage. Gone are the days when the room or even an apartment you could barter for foreign cars age a few years or a new Togliatti automobile plant products – so little cost housing. Today, real estate has become so expensive that many people can not accumulate the necessary amount for several decades. However, they need somewhere to live. How to solve housing problem? In the West, where private property has existed for several centuries, and about the same time developing the banking system, the answer is found for a long time. Mortgages – so called special kind of bank credit, which helps individuals and families to get their own roof over your head. Mortgage is an ordinary loan, which gives the bank.
Of consumer credit, it differs relatively low interest rates, and long enough. But the main difference between a mortgage loan from the rest is that it has granted bail purchased housing. In other words, if the recipient mortgage loan is unable to pay, an apartment or a house, bought in the mortgage, shall become the property of the bank. This does not mean that it is not coping with the obligations under the mortgage borrower and his family will be on the street – the bank will return the funds to the borrower that he could be counted on the mortgage. Maybe they have enough to buy less expensive housing. Or to rent an apartment as long as coping with a mortgage person will recover their material well-being, and will again become solvent.