You might have heard about mortgages before and have been wondering what mortgages are. In this article, I’m going to explain in brief what a mortgage is. You can start by asking what a mortgage is.
A mortgage is a loan usually offered by the bank. The borrower uses the mortgage to purchase or maintain a home or other forms of real estate and agrees to pay back over time, typically in a series of regular payments.
The property serves as collateral to secure the loan.
Types of mortgages varies according to the number of years the loan is to be paid back.
The borrower pays back the loan plus interest over a specified number of years until they own the property free and clear.
In the case that the borrower fails or stops paying back, the lender can foreclose on the property and sell the the property. The money from the sale is then used to pay the debt off.
Mortgages makes property ownership affordable because the repayment is spread over so many years. Also interest rates on mortgages tend to be lower than any other forms of borrowing because the loan is secured against your property.
The companies that offer mortgages in Zimbabwe include First Capital Bank, CABS, FBC Building Society, Stanbic Bank, NMB, CBZ, Homelink, ZB Financial Holdings and National Building Society.
ARTICLE BY ANGELINE T KANYEMBA