(NC) If you're shopping for a mortgage, it's important to think about the long-term implications of the contract you're signing. One little-understood aspect of a mortgage contract is how the mortgage security will be registered.
Ask each lender you contact whether they will register the mortgage security with a standard or a collateral charge. The charge gives your financial institution the right to sell your home if the loan is not repaid as agreed.
Investigate your options to find one best suited to your needs.
Standard charge vs collateral charge
With a standard charge, the specific details of the mortgage loan (e.g., the amount, term and interest rate) are included in the charge registered on the title to the property. A standard charge is registered for the actual amount of the mortgage loan.
With a collateral charge, the specific details of the mortgage loan might not be included in the charge, and it can be used to secure multiple loans with your lender, including a mortgage and...