Master Mortgage
Categories: Mortgage
If we’re into antiquing, we’re probably also into knowing an antique’s provenance: where it was made, when it was made, who bought and sold it, etc.
A “master mortgage” is like provenance documentation, but for property. It’s created the first time a property is sold, and then it’s amended every time that same property is mortgaged again. It’s like an activity log for property sales.
Master mortgages are helpful because, not only do they give us a nice overview of a piece of property’s history, but they can also alert us if there are any liens or anything against the land. That’s because liens are also recorded on master mortgages, as well as info about when (or if) they’ve been released.
Why is this a big deal? Because liens are attached to property, not property owners. So if we buy property with a lien on it, that lien becomes our problem. Which is no bueno. But never fear...all we have to do to see a property’s master mortgage is ask our lender or the local county clerk. Master mortgages are public record, which means we don’t need to wait for an episode of Mortgage Roadshow to come to town to learn the skinny about a piece of property.
Related or Semi-related Video
Finance: What is a Mortgage?345 Views
Finance allah shmoop shmoop What is a mortgage Well people
a mortgage is just dead it's alone but one with
special tax treatment For most people simply put Any interest
you pay on a mortgage to buy a home is
tax deductible Morty morton's inputs down a hundred thousand bucks
to buy a home that costs four hundred big ones
his mortgages three hundred grand at five percent interest per
year So that's fifteen thousand dollars a year he pays
to rent the money from the bank which he uses
to buy his dream home with the loop de loop
waterslide Morty earns one hundred grand a year and pays
tax on his last fifteen thousand of earnings soas faras
The irs is concerned since morty can deduct his fifteen
thousand dollars in interest against his earnings he does not
in fact earn taxable wages of one hundred grand annually
Instead he earns taxable wages of eighty five thousand dollars
a year Essentially with government is doing is sharing in
some of the cost of renting the money Taub i'm
ortiz home well why would the u s government be
so charitable Well because home ownership has been integral part
of the american dream since the u s of a
i po'ed in seventeen seventy six easy access to mortgages
and then home buying can be a hugely beneficial asset
In the vast majority of cases homes create family stability
a store of wealth and tax dollars for local schools
in the form of real estate taxes So don't feel
bad about splurging on that water slide there Morty Just 00:01:42.93 --> [endTime] remember you're doing it for the kids Hello