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Simple English definitions for legal terms
mortgaging out
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A quick definition of mortgaging out:
Term: Mortgaging Out
Definition: Mortgaging out is when someone buys a house or property by borrowing all the money they need to pay for it. This means they don't have to save up a big chunk of money before they can buy the property. Instead, they make regular payments to the bank or lender over a long period of time until they have paid back the full amount plus interest.
A more thorough explanation:
Definition: Mortgaging out refers to the practice of financing 100% of the purchase price of a real property.
Example: John wants to buy a house worth $300,000. He doesn't have enough money to pay for it in cash, so he decides to mortgage out. He borrows $300,000 from a bank or a lender and pays it back over a period of time with interest.
Explanation: Mortgaging out is a common practice among homebuyers who don't have enough money to pay for a property in cash. By mortgaging out, they can purchase a property without having to save up for years. However, it's important to note that mortgaging out comes with interest rates and fees, which can add up over time.