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In a set rate mortgage, a person's eye rate, and therefore periodic payment, remains fixed for the life (or phrase) of the mortgage. Therefore the transaction is fixed, although ancillary charges (such as house taxes and also insurance) can easily and do change. For a fixed rate mortgage loan, payments regarding principal and also interest should not change over the life of the borrowed funds,
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Many other specific characteristics are normal to many marketplaces, but the over are the important features. Government authorities usually control many aspects of mortgage financing, either straight (through law, for example) or even indirectly (via regulation of the actual participants or even the financial markets, like the banking business), and often by means of state treatment (direct loaning by the authorities, by state-owned banking institutions, or sponsorship of various agencies). Other elements that define a particular mortgage marketplace may be localised, historical, or even driven through specific characteristics of the legal or economic system.
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The word mortgage can be a French Law term that means "death contract", meaning that the pledge ends (dies) when either the obligation is actually fulfilled or perhaps the property is taken through foreclosure.