Mortgage Etymology

Mortgage Etymology can be defined as the evolvement and origin of mortgages. In earlier years the length of mortgages was 20 years and interest rates were fairly constant at 6%. Homeowners paid off mortgages and even had mortgage burning parties. Banks were paying over 6% on savings and offering certificates of deposit (CD’s) with up to 10% interest This all changed when interest rates came down in the 1960’s rates dropped into the 4’s and adjustable rates even lower. Banks reduced the savings and CD rates even further so it was no longer as advantageous to pay off low-interest-rate loans when you could earn higher rates through investments, also homes started appreciating at an accelerated pace. Today’s rates are very low making a Real Estate purchase even more attractive. Cost-effective loans can best guide you through the process of real estate ownership