Mortgage loan is a loan secured use to finance by real property. It is usually used with specified payment periods and interest rates according to the agreement of the mortgage loan made between the two parties. Mortgage loan also can know as amortized loan. Under legal agreement, the mortgagor (borrower) gives the mortgagee (lender) a lien on the real estate as collateral for the loan. However, the home loan and mortgage are often used interchangeably. So, the mortgage is really an agreement that makes the home loan work- the commercial bank would not lend you some hundreds of thousands of money unless they knew they could claim your home in the event of your default. Generally, the word mortgage is most commonly used to mean mortgage loan. Besides that, a mortgagor can obtain the financing to buy or secure against the property from a financial institution for instance, a bank, Continue reading
Personal Finance Concepts
Understanding Decreasing Term Life Insurance: A Guide to Protecting Your Loved Ones
Life insurance is a crucial aspect of financial planning. It provides financial support to your loved ones in case of your untimely death. Different types of life insurance policies are available in the market, including term life insurance, whole life insurance, and universal life insurance. One of the most popular types of term life insurance is decreasing term life insurance. What is Decreasing Term Life Insurance? Decreasing term life insurance is a type of term life insurance where the death benefit decreases over the policy term. It’s designed to cover a specific debt or liability that decreases over time, such as a mortgage or a business loan. The premium stays the same throughout the policy term, but the death benefit reduces at a predetermined rate. For example, suppose you take out a decreasing term life insurance policy to cover your mortgage. The policy term is 30 years, and the death Continue reading
Primary Purpose of Taxation
Taxation is a means by which governments finance their expenditure by imposing charges on citizens and corporate entities. The main purpose of taxation is to accumulate funds for the functioning of the government machineries. All governments in the world cannot run its administrative office without funds and it has no such system incorporated in itself to generate profit from its functioning. In other words, a government can run its administrative set up only through public funding which is collected in the form of tax. Therefore, it can be well understood that the purpose of taxation is very simple and obvious for proper functioning of a state. Taxes are charges levied against a citizen’s personal income or on property or for some specified activity. As such, one purpose of taxation is to increase in effectiveness and productivity of the nation as government is able to implement various socio-economic development projects such Continue reading