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LSDefine

Simple English definitions for legal terms

Purchase Money Mortgage

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A quick definition of Purchase Money Mortgage:

A purchase money mortgage is when someone buys a house and gives the seller a loan to help pay for it. This loan is usually in place of some of the money the buyer would have paid the seller in cash. For example, if someone buys a $500,000 house, they might get a $400,000 loan from a bank, pay $60,000 in cash, and give the seller a $40,000 loan. These loans have higher interest rates than regular bank loans and are often used by people who don't have enough money saved up or have bad credit.

A more thorough explanation:

A purchase money mortgage is a type of mortgage that a buyer gives to the seller of a property as part of the deal to buy the property. This mortgage usually replaces part or all of the cash that the buyer would otherwise pay the seller.

For example, if a buyer wants to buy a $500,000 house, they might pay for it with a $400,000 bank mortgage, $60,000 in cash, and a $40,000 purchase money mortgage.

Purchase money mortgages have higher interest rates than traditional bank mortgages. They are often used by buyers who don't have enough savings to cover a traditional down payment or who can't get a large enough bank mortgage due to poor credit.

Another example of a purchase money mortgage is when a buyer wants to buy a property that is worth $200,000, but they only have $150,000 in cash and can't get a bank mortgage for the remaining $50,000. In this case, the buyer could offer the seller a purchase money mortgage for the remaining $50,000.

These examples illustrate how a purchase money mortgage can be used to help a buyer purchase a property when they don't have enough cash or can't get a traditional bank mortgage.

pur autre vie | Purchase Money Resulting Trust

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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