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-   -   when does a loan stop being a loan and become a mortgage? (http://www.u2interference.com/forums/f287/when-does-a-loan-stop-being-a-loan-and-become-a-mortgage-47720.html)

kobayashi 11-29-2001 09:36 PM

when does a loan stop being a loan and become a mortgage?
 
if i took out a loan on an expensive car, like a $ 200 000 car, would that be a mortgage?
does mortgage apply to anything over a certain amount or does it need to involve property?

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bottom line: U2 rules.

U2Bama 11-29-2001 11:22 PM

Loan is to personal property as mortgage is to real property.

(Real property: land, buildings, etc.)

melon 11-29-2001 11:48 PM

In the world of banking, mortgages are only on land property, including homes on land property.

The distinction is in the term, which is usually considerably long (30 years on average) and the interest rate is usually lower than with a regular loan, where repayments are usually no more than two or three years and the rates are higher. Plus, in the U.S., interest on mortgages can still be written off on taxes, even though, before the 1980s, this was the case with all loan interest.

Basically, it is a legal distinction.

I used to work in a bank, so this is how I know this.

Melon

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"He had lived through an age when men and women with energy and ruthlessness but without much ability or persistence excelled. And even though most of them had gone under, their ignorance had confused Roy, making him wonder whether the things he had striven to learn, and thought of as 'culture,' were irrelevant. Everything was supposed to be the same: commercials, Beethoven's late quartets, pop records, shopfronts, Freud, multi-coloured hair. Greatness, comparison, value, depth: gone, gone, gone. Anything could give some pleasure; he saw that. But not everything provided the sustenance of a deeper understanding." - Hanif Kureishi, Love in a Blue Time

Angela Harlem 12-01-2001 07:32 AM

What car could possibly cost $200,000???? *imagines the Jaguar she could get with that much cash

Seriously, I worked in merchant services in a bank and there was this one guy who rang from a caryard and said he had a customer paying for a $280,000 Mercedes with either an Amex or Diners. She 'still hadnt decided' which card to use. <insert mega rolleyes here>.

Banks are fun.

kobayashi 12-01-2001 07:45 AM

Quote:

Originally posted by Angela Harlem:
What car could possibly cost $200,000????
lots of cars can cost $200 000

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bottom line: U2 rules.

Angela Harlem 12-01-2001 08:19 AM

me: "I think I'll take the Maserati, thanks"

Salesdude: "And how would you like to pay for it?"

me: "Finance baby!"

hehe, I know they can cost shitloads, but the idea of paying for a car with enough money to pay off a home, with finance makes me laugh. Avco at 26% on $200,000 http://forum.interference.com/u2feedback/biggrin.gif http://forum.interference.com/u2feedback/biggrin.gif http://forum.interference.com/u2feedback/biggrin.gif

Crzy4Bono 12-02-2001 10:54 AM

Quote:

Originally posted by U2Bama:
Loan is to personal property as mortgage is to real property.

(Real property: land, buildings, etc.)


Wow, Bama - I'm impressed. And you not even a banker. http://forum.interference.com/u2feedback/smile.gif


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She's gonna dream up a world she wants to live in / She's gonna dream out loud.
Visit my web page at www.u2page.com

TheU2 12-02-2001 12:55 PM

Quote:

Originally posted by melon:


The distinction is in the term, which is usually considerably long (30 years on average)

30 year mortgage is not the average, its the max. You will find it had to get financing for longer than 30 years.



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Kennedy

unforgettableFOXfire 12-02-2001 01:42 PM

*has dreams about driving a $200 000 aston martin*

U2Bama 12-03-2001 06:32 PM

Quote:

Originally posted by Crzy4Bono:

And you not even a banker.

No, but:
1. My career is in commercial real estate;
2. My main client is a bank;
3. I pay a mortgage on my home; and,
4. I recently paid off my car loan.

~U2Alabama



[This message has been edited by U2Bama (edited 12-03-2001).]

Malibu Whortense 12-03-2001 06:40 PM

Quote:

Originally posted by TheU2:
30 year mortgage is not the average, its the max. You will find it had to get financing for longer than 30 years.
well, to be more specific, there are usually 2 terms i've run into--15 year and 30 year mortgages. most cannot afford 15 year mortages, so they go to 30 year mortgages.

which is crazy. taking 30 years to actually own your own house? this wasn't always the way it was. http://forum.interference.com/u2feedback/mad.gif

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~whortense wiffin
walla walla, washington

[This message has been edited by Malibu Whortense (edited 12-03-2001).]

Angela Harlem 12-04-2001 03:00 AM

The average here is 25 years, which is also ridiculous.

Thanks to variable offsets and such, it is possible to pay it off quicker, Im sure you guys have the same deal. These offset facilities should apply to larger loans in general, but Im not sure they do.

Lilly 12-04-2001 06:35 PM

I'm just happy because I have neither...not for long though, I'm going to college next year, and it'll be "HELOOOOOO LOANS!!"

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Go lightly down your darkened way.


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