PrefaceA mortgage is a form of debt, secured by the security of a specific piece of real estate. The borrower is required to repay the debt in predetermined installments. The most common reason for acquiring a mortgage is to purchase a property when it cannot be paid for in advance. The buyer, under a residential mortgage loan, pledges his or her house to the bank. Over the years, the borrower repays the loan with interest. Once the mortgage is fully repaid, the owner keeps the property without any encumbrances. However, in the event of foreclosure, the bank has a claim on the home, as a form of insurance if the buyer fails to repay their mortgage. The bank can then sell the house and use the capital to pay off the mortgage balance. Each mortgage has an interest rate and different repayment options, which are agreed in advance with a bank manager at the start of the loan. A fixed rate mortgage allows the borrower to pay the same interest rate for the life of the loan, with monthly payments never increasing. The other option is a variable mortgage rate, the most common....