Changes

A '''mortgage''' is the granting of a [[lien]] on real property, such as a home, by a [[debtor]] (borrower) to the [[creditor]] (lender), such that the property is security for the repayment of a [[loan]]. Once the loan is paid, the mortgage should be discharged.  

A '''mortgage''' is the granting of a [[lien]] on real property, such as a home, by a [[debtor]] (borrower) to the [[creditor]] (lender), such that the property is security for the repayment of a [[loan]]. Once the loan is paid, the mortgage should be discharged.  

An increase in the mortgage rate makes it more difficult to purchase a home, and can cause a slowdown in the housing market. Mortgage rates are typically 3 or so points higher than the [[Federal funds rate]], which is set by the [[Federal Reserve Bank]].

An increase in the mortgage rate makes it more difficult to purchase a home, and can cause a slowdown in the housing market. Mortgage rates can be 3 or so percentage points higher than the [[Federal funds rate]], which is set by the [[Federal Reserve Bank]]'s Federal Open Market Committee (FOMC).

Hypothecation refers to the right of a creditor to liquidate goods, securities, or other [[assets]] if the borrower fails to service a loan.  

Hypothecation refers to the right of a creditor to liquidate goods, securities, or other [[assets]] if the borrower fails to service a loan.