Mortgage loan is a loan method adopted by some national banks. It requires the borrower to provide certain collateral as a guarantee for the loan. If the borrower fails to repay the loan on schedule after the loan expires, the banks can auction its collateral, thus repaying the loan with the proceeds from the auction. General collateral is an item that is easy to preserve and sell. For example, securities, stocks, real estate, etc. When users need money, handling mortgage consumption business becomes an inevitable choice for some consumers. Users understand the definition and types of mortgage loans. Then they can make the right choice when making mortgage loans. This article will introduce several types of mortgage loans.

1. Real Estate Mortgage

People often use land and houses as real estate collateral. The debtor legally transfers the ownership of the real estate to the creditor. But the creditor does not possess the real estate. Before the debt is repaid, the real estate belongs to the creditor. When all debts have been repaid, the ownership will be recovered. The advantage is that the debtor retains possession of the real estate. And they can use it during the mortgage process. The creditor has ownership of the real estate before the debtor repays the debt. Even if the debtor does not repay the debt, the creditor does not have to suffer losses.

2. Chattel Mortgage

Chattel mortgage refers to the form of mortgage that the debtor or the third party guarantees by the non-transferable possession of chattel. It includes special movable property such as planes, ships and cars. Chattel mortgage can use its exchange value as the demand for financing guarantee. It can invigorate finance. It can promote economic development. And it can guarantee the best use of everything.

3. Rights Mortgage

Rights mortgage is a mortgage guarantee that sets up with other real rights as the target. The right collateral is the land use right enjoyed by the debtor or a third party. The mortgage obligor has the right to dispose of this right.

4. Consortium Mortgage

Consortium mortgage refers to the form of mortgage that guarantees creditor's rights with all the property of an enterprise as a whole. It includes the floating guarantee system in Britain and the United States and the railway consortium system in France.

5. Joint Mortgage

Joint mortgage is a form of mortgage that sets mortgage rights on several real estate or real estate rights to guarantee the same creditor's rights. It is not a simple combination of several mortgages. It should be based on the premise of guaranteeing the same creditor's rights. And it should be combined with each other to guarantee the creditor's rights. The function of joint mortgage is to guarantee the realization of creditor's rights and disperse the danger of collateral.

6. Maximum Mortgage

Maximum mortgage refers to the property that the debtor or a third party provides guarantee for the continuous creditor's rights within a certain period. When the debtor fails to perform the due debt or the realization of the mortgage right as agreed by the parties occurs, the mortgagee has the right to receive priority for the guaranteed property within the maximum bond limit.

Before making mortgage loans, you should master the types of mortgage loans. Then you can select suitable mortgage methods. You can make precise mortgage. Then you can better control your mortgage items while getting the loan.