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Mortgages - Financial Institutions
An arrangement of the property being purchased provides the security for funding. Other assets may be employed like security for funding of another asset.
Features
1. Mortgagee and Mortgagor agree at a long term financing arrangement
2. Financing relates to acquisition of exact asset
3. Mortgagor provides a contribution that is paid up-front.
4. Repayment is over exacted long term duration.
5. Interest rate is stated with provision for variations of the determination of the finance.
Difficulties in mortgage arrangements
1. Initial contribution is not affordable by majority of the population as like Nyayo Highrise
2. Estate.
3. Potential participants ignore getting tied upon in long term loans
4. Experiences along with mortgage arrangements have been discouraging.
5. Interest rate fluctuations create planning uncertain.
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