Posts Tagged ‘early home payoff’

Mortgagee vs. Mortgagor

The English language has many peculiarities, and mortgagee versus mortgagor is another set. However, a cultural idiosyncrasy could be to blame.

In English, the “ee” suffix typically denotes the person in the lower or lesser position, like “attendee” (one who attends something, not the entity that sponsors the event). Similarly, the “or” suffix denotes power, as in “actor,” “operator” and “inventor.”

In the home loan business, the person who is paying on a mortgage may be widely considered to be the “mortgagee”–the person in the one-down position, the bug on the windshield of home ownership. That assumption is cultural, not linguistic.

When you take out a loan on your real property (real estate), you are the person in power. You are letting the bank take an option on your property, should you fail to make your payments. Like life insurance, it’s a gamble that favors catastrophe as far as the lender is concerned.

A blog caught my eye: To Mortgagees Who Want To Be Mortgage Free For Life. I read author Neil Venketramen’s ruminations without figuring out what he was getting at…except perhaps to post potentially income-earning links. Nonetheless, a point of correction is in order.

If Neil is addressing home-buyers who’d like to not be making monthly payments, very little of which goes toward actually paying for the house, and way too much goes toward lining the bank’s pockets with ill-gotten gain (because of usurious interest rates when calculated over the life of the loan rather than in 1/30th increments), he would more properly be understood by saying To Mortgagors Who Want to Be Debt Free for Life. It is the home buyer who grants the lender a default option on the property. Therefore, it is the home purchaser who is in the position of power — the “or” in the mortgage payoff or mortgage acceleration process.

Paying off your home years sooner can provide amazing relief from stress, peace of mind and security. Just remember, whether you pay off your home earlier, or take the traditional 15/30 years (20/40 in Canada), it is you, dear friend who is the actor, the operator, and the terminator of your mortgage’s final demise …through reclaiming your interest by buying out the lender.

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