How to Own a Home with Easy Installments using a Mortgage

One type of mortgage loan that is popular in the world is a Home Ownership Loan. In every country, there must be a format that is not much different, including in America.

With a mortgage system, the process of paying for a house can be easier to bear.  


With house and land prices constantly increasing every year, owning a house is a difficult thing to do in cash. 


Mortgage debt instruments provide an alternative way to own your dream home in an easier way. 


Mortgage loans, in this case Home Ownership Loans, have their own advantages that relieve debtors (debtors) in financing home installments. 


The payment scheme is divided into smaller amounts over a period of years, making it easier to bear, Inflation that continues to rise makes installments in the coming years feel lighter.


In this article, will discuss mortgages further, to provide an explanation that can help us all understand this debt instrument better.

What is a mortgage? 


The term mortgage itself comes from the Latin hypoth? and the Greek hupoth?. 


Mortgage generally has the meaning of "credit given on the basis of collateral in the form of immovable property."


Collateral in the form of assets or immovable objects, for example, such as land, houses, buildings, and apartments. 


According to the Financial Services Authority, a mortgage is “a debt instrument with the granting of mortgage rights over the property and the borrower to the lender as collateral for his obligations; in this case the borrower can still use or utilize the property; the mortgage rights over the property fall after the obligation is paid off (mortgage).”


So from the above definition, we can easily understand that a mortgage is a long-term debt instrument in the form of a loan to buy property or land with collateral in the form of land or the property itself is handed over by the borrower (debtor) mortgage rights (debtor) to the lender (creditor) with the object loans that can still be used by the debtor. 


"We can occupy a house or land, a building that has not been paid off but it becomes collateral for the debt of the asset"


Borrowers can own a house by paying off the mortgage debt, namely the value of the house along with the interest. 


If the borrower does not succeed in paying off his mortgage debt, then the object of the guarantee becomes the property of the lender (creditor).

Pawn vs mortgage

To understand the difference between a mortgage and a pawn, we need to first know the legal concept and the meaning of the pawn itself. 


According to the general English dictionary, pawn is "borrowing money within a certain time limit by submitting goods as dependents, if it has not been redeemed, the goods become the rights of the lender."


Meanwhile, according to the Financial Services Authority, a pledge is a “mortgage right on movable property; collateral must be released from the authority of the debtor". 


From the definition above, we can see that at a glance a pawn has similarities to a mortgage.


However, these two debt instruments are different. 


Here are some of the differences between a mortgage vs a mortgage.


1. Collateral for mortgage debt in the form of assets or immovable objects, such as property, land, houses, apartments, or boats

2. There must be an official written agreement made before a notary

3. The collateral does not become the property of the debt borrower.

4.Using the object of collateral

5. The status of the right to the guarantee is not lost even though the guarantee changes hands

6. Proven by an authentic deed

7. The practice is carried out by a banking financial institution


1. Collateral in the form of movable assets or objects, tangible or intangible, for example jewelry and vehicles motorized (usually the object of goods is smaller and easy to move)

2. Not required to involve a notary in the agreement

3. The contents of the agreement include rules for transferring power over the object of collateral

4. The debtor (borrower) relinquishes ownership rights to the object of collateral to the lender. The object is brought by the lender

5. The proof can be done by proving the main agreement

6. Rights are lost if the object of collateral changes hands

7. The practice is carried out by pawning institutions, for example Pawnshops


A mortgage is a debt instrument where the borrower can still use or utilize the property that is the object of the guarantee. 


Therefore, a mortgage is a good way to own a home. 


During the debt payment process, the creditor (debt borrower) can still use the object of collateral, in this case occupying the house that is used as collateral.

Mortgage object


Among the objects of mortgage debt are as follows:


1. Transferable immovable objects and all their equipment

2. Use of proceeds on these objects and all their equipment

3. Pilgrimage rights and business rights

4. Land interest (both paid with money or to be paid with land proceeds)

5. Interest as before

6. Markets recognized by the government, along with the original rights attached to

Mortgages The housing

use of the mortgage system to own a house in USA is known as the program Home Ownership Credit


Home Ownership Loans are usually a mandatory bank program, a home financing program with a mortgage loan system. 


The aim is to provide an alternative option for the community to own a house with light installments in the long term. 

Along with its development, the Home Ownership Loan program has become increasingly popular and other banks have also provided mortgage loans, because generally only large banks have strong fundamentals.


Home Ownership Loans are loans offered by banks to customers who want to buy property with a collateral object in the form of a certificate of the house to be purchased itself. 


Thus, a mortgage is one way that can help people to own a house.

So why don't you try owning a home with a mortgage?

Try calculating your mortgage needs using the calculator below

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