Hello. I am new to the real estate biz and i dot even know what a mortgage is and how to get one. I was hoping that if someone can just explain to me all about mortgages and how they work. ALso if you can tell me about how to get one that would be great. Thank you.

Well it is as not straightforward as some people think. I am a banker with Flagstar and I know great deal of people in the industry who originate loans who don’t even really know what a mortgage is.

A mortgage is a security instrument that places your house up for collateral to secure a Note…
The Note or Promissory Note is your promise to re-pay a specific amount of money over a specific time with a specific interest rate. You mortgage your property to get the note that pays for it. Anyone who owns a home and has a mortgage or invests in real estate should know how to read a Note. There are a great deal of shady mortgage guys out there who will tell you one thing to close a deal and make some money but the Note says something completely different. In the note you can find your Interest rate, the type of rate that it is, if it is adjustable it will tell you when it adjusts and how it adjusts, the note also has your pre-payment penalty information under the “borrowers right to pre-pay”. The Note will also tell you when your first payment is due and how much the payment is.

If you know how to read a Note you can’t get screwed on a mortgage. As to where you get a mortgage?