The mortgage is nothing but a type of loan only. Mortgage can be taken on the home of your ownership. There can be any purpose for taking a mortgage either it can be a purchase of a new home or it can also be improving an existing home or renovating or remodeling your old home or it can also be paying off any ordinary expenses. But still, you should be careful while selecting the types of mortgages.
There are different types of mortgages based on different types of usage. Thus you have to analyze every type of mortgage and see which one fits in with your needs. You need to consider what kinds of mortgages you want to opt for. You need to study each one of them for a better decision. Here are some of the various types of mortgages to choose from.
- Simple Mortgage
A simple mortgage is one where you don’t need to deliver the possession of your mortgaged property. Here the mortgage will bind him with the property mortgaged personally for paying off the mortgaged money. Here the mortgagor agrees impliedly and expressly that if someone fails to pay off the mortgaged money according to the contract, the mortgagee will have the right to cause the mortgaged property to sell off and take the proceed of the sale but only up to that limit which you have the mortgage.
The remaining amount must be reimbursed back to the mortgagor. Any such transaction is considered a simple mortgage and the mortgagee of such transaction is called a simple mortgagee.
- Mortgage by Conditional Sale
In such types of mortgages, the mortgager sells off the mortgaged property to the mortgagee. The property is sold on the condition that if there is any default in making payment of mortgage money on the specified date, then the sale will become obsolete. If the payment is made at right time then any such sale will be considered void and property shall be given back to the mortgagor.
When the full payment is made at the time decided, the buyer is obliged to transfer the property back to the seller. Any transfer of such type is considered a mortgage by conditional sale and any such mortgagee is called a mortgagee by conditional sale.
- Usufructuary Mortgage
In case when mortgagor delivers the property to the mortgagee, with implied or express condition, the mortgagor sells the property to the mortgagee and also gives him the right to take any gain or income coming out of that property. The mortgagee can take any advantage related to the property. He can receive any rent or any other income generated from the property.
This income is deducted from the total mortgage money of the mortgagor. If there is any damage to the property in the due course of time then it is also to be bearded by the mortgagee only as he has the total right of the property for that time. When the full payment of mortgage money is paid then the property is transferred back to the mortgagee.