Most of us must have heard about mortgages that individuals take again an immovable Property, but rarely are we aware of different types of Mortgage options we have. One might hear the term mortgages in connection with home loans. Before we go into the details of types of mortgages, it is important the understand what is a mortgage. A mortgage is explained as the transfer of interest of an immovable property for taking money on loan as an advance. A mortgage is generally made when you need to clear off a debt, an existing loan or the performance of engagement.

Types of mortgages

You might find many books with different types of mortgages explained, but if you want simple to understand terms and basic knowledge, here is a list.

• A simple mortgage is a one in which, without transferring the mortgaged property, the mortgagor agrees to bind self to pay the mortgage money he has taken from the mortgagee. In case of non-payment of the mortgage loan within a specified period, the mortgagee has the right to sell the mortgaged property to procure the mortgage money.
• Mortgage by conditional sale is the one in which the mortgagor sells the property to the mortgagee on few conditions such as-

1. If the mortgagor fails to make the payment of mortgage money, the sale becomes absolute and final or
2. If the mortgagor succeeds in paying the mortgage money within the specified period, the sale becomes invalid or
3. If the mortgagor succeeds in making the repayment of mortgage money, the property is re-transferred to the mortgagor by the mortgagee.

• Under usufructuary mortgage, the control of the mortgaged property is transferred to the mortgagee. He receives all the rent, interest and profit from the property until the loan is repaid. The title deed, however, remains with the owner of the property.
• Another kind of mortgage is English mortgage. Under this, the mortgagor binds himself to repay the borrowed amount by a certain date. The mortgagor also transfers the property completely and absolutely to the mortgagee. The only condition is that on repayment of the borrowed amount before the agree date, the mortgagee will retransfer the property to the mortgagor.
• Under mortgage by deposit of the title deeds, the mortgagor transfers the title deed of the property to the mortgagee to create a security. Such mortgage is only valid in cities where State Government has noticed so.
• Anomalous mortgage combined different types of mortgages.

To get a detailed explanation of these kinds of mortgages, consult a mortgage banker who will guide you about the types of mortgage loan products. Also, if you suffer from a bad credit, ask for solutions. Mortgage bankers also have solution for loans for people with bad credit.

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