91-662: Murgenthal is a municipality in the district of Zofingen in the canton of Aargau in Switzerland . Murgenthal is first mentioned in 1255 as Murgatun . The Herrschaft rights to the village belonged to the Counts of Frohburg until 1299, when they went to the Habsburgs . From the Bernese conquest of the Aargau in 1415, until 1798, the rights were held by city of Bern . Between 1640 and 1645
182-450: A Fachhochschule ). Of the school age population (in the 2008/2009 school year), there are 185 students attending primary school , there are 66 students attending secondary school in the municipality. Murgenthal is home to the Schul-u.Gde.Bibliothek Murgenthal (school and municipal library of Murgenthal). The library has (as of 2008) 4,422 books or other media, and loaned out 4,166 items in
273-455: A floating rate or variable rate mortgage ). In some countries, such as the United States, fixed rate mortgages are the norm, but floating rate mortgages are relatively common. Combinations of fixed and floating rate mortgages are also common, whereby a mortgage loan will have a fixed rate for some period, for example the first five years, and vary after the end of that period. The charge to
364-436: A hypothec loan , is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is " secured " on the borrower's property through a process known as mortgage origination . This means that a legal mechanism is put into place which allows the lender to take possession and sell
455-411: A mortgage or a rent-to-own agreement). As of 2000, there were 70 homes with 1 or 2 persons in the household, 484 homes with 3 or 4 persons in the household, and 468 homes with 5 or more persons in the household. As of 2000, there were 1,039 private households (homes and apartments) in the municipality, and an average of 2.5 persons per household. In 2008 there were 538 single family homes (or 44.1% of
546-455: A personal equity plan (PEP) mortgage, Individual Savings Account (ISA) mortgage or pension mortgage . Historically, investment-backed mortgages offered various tax advantages over repayment mortgages, although this is no longer the case in the UK. Investment-backed mortgages are seen as higher risk as they are dependent on the investment making sufficient return to clear the debt. Until recently it
637-489: A standard form contract Multistate Fixed-Rate Note 3200 and also separate security instrument mortgage forms which vary by state. In Canada, the Canada Mortgage and Housing Corporation (CMHC) is the country's national housing agency, providing mortgage loan insurance, mortgage-backed securities, housing policy and programs, and housing research to Canadians. It was created by the federal government in 1946 to address
728-522: A certain term, but the outstanding principal balance is due at some point short of that term, and at the end of the term a balloon payment is due. When interest rates are high relative to the rate on an existing seller's loan, the buyer can consider assuming the seller's mortgage . A wraparound mortgage is a form of seller financing that can make it easier for a seller to sell a property. A biweekly mortgage has payments made every two weeks instead of monthly. Budget loans include taxes and insurance in
819-471: A certain time in Switzerland are also allowed to participate in municipal politics. As at the cantonal and federal level, citizens enjoy political rights, including direct democratic ones, in their municipality. Municipalities are financed through direct taxes (such as income tax ), with rates varying more or less within a framework set by the canton (see Taxation in Switzerland ). As among the cantons, there
910-647: A credit line. In the U.S. a partial amortization or balloon loan is one where the amount of monthly payments due are calculated (amortized) over a certain term, but the outstanding balance on the principal is due at some point short of that term. In the UK, a partial repayment mortgage is quite common, especially where the original mortgage was investment-backed. Graduated payment mortgage loans have increasing costs over time and are geared to young borrowers who expect wage increases over time. Balloon payment mortgages have only partial amortization, meaning that amount of monthly payments due are calculated (amortized) over
1001-505: A higher risk tolerance and do so knowing that they face more challenge in reselling the loan. Many countries have similar concepts or agencies that define what are "standard" mortgages. Regulated lenders (such as banks) may be subject to limits or higher-risk weightings for non-standard mortgages. For example, banks and mortgage brokerages in Canada face restrictions on lending more than 80% of the property value; beyond this level, mortgage insurance
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#17328583821701092-452: A key concept as it often defines whether or not the mortgage can be easily sold or securitized, or, if non-standard, may affect the price at which it may be sold. In the United States, a conforming mortgage is one which meets the established rules and procedures of the two major government-sponsored entities in the housing finance market (including some legal requirements). In contrast, lenders who decide to make nonconforming loans are exercising
1183-445: A loan. Builders may take out blanket loans which cover several properties at once. Bridge loans may be used as temporary financing pending a longer-term loan. Hard money loans provide financing in exchange for the mortgaging of real estate collateral. In most jurisdictions, a lender may foreclose the mortgaged property if certain conditions occur – principally, non-payment of the mortgage loan. Subject to local legal requirements,
1274-475: A mortgage occurs when an owner (usually of a fee simple / freehold interest in real property , but frequently leasehold in England and Wales) pledges his or her interest (right to the property) as security or collateral for a loan. Therefore, a mortgage is an encumbrance (limitation) on the right to the property just as an easement would be, but because most mortgages occur as a condition for new loan money,
1365-399: A notion of standard or conforming mortgages that define a perceived acceptable level of risk, which may be formal or informal, and may be reinforced by laws, government intervention, or market practice. For example, a standard mortgage may be considered to be one with no more than 70–80% LTV and no more than one-third of gross income going to mortgage debt. A standard or conforming mortgage is
1456-444: A number of more or less standard measures of creditworthiness may be used. Common measures include payment to income (mortgage payments as a percentage of gross or net income); debt to income (all debt payments, including mortgage payments, as a percentage of income); and various net worth measures. In many countries, credit scores are used in lieu of or to supplement these measures. There will also be requirements for documentation of
1547-585: A private car. From the 2000 census, 577 or 21.1% were Roman Catholic , while 1,574 or 57.4% belonged to the Swiss Reformed Church . Of the rest of the population, there were 3 individuals (or about 0.11% of the population) who belonged to the Christian Catholic faith. In Murgenthal about 70.1% of the population (between age 25 and 64) have completed either non-mandatory upper secondary education or additional higher education (either university or
1638-401: A wicker and wood products factory opened in 1894. The village continued to develop due to the railway and factories. In 1920, about 63% of the working population worked in manufacturing. By 2005 that number had dropped to only 28%. The number of jobs in the municipality has dropped to about half of the peak number in 1950 (1,485 jobs) due to factory closings. The first village school was held in
1729-654: Is Azure three Trefoils slipped Argent issuant from Coupeaux Vert and in Chief a Cross pattee couped of the second. Murgenthal has a population (as of December 2020) of 2,959. As of June 2009, 15.3% of the population are foreign nationals. Over the last 10 years (1997–2007) the population has changed at a rate of -0.5%. Most of the population (as of 2000) speaks German (90.7%), with Albanian being second most common ( 2.8%) and Italian being third ( 2.2%). The age distribution, as of 2008, in Murgenthal is; 263 children or 9.2% of
1820-449: Is a tax transfer among the municipalities to balance various levels of tax income. Switzerland has a relatively high number of small municipalities, with a population of 1,000 or less, especially in rural areas. Because of the increasing difficulty in providing professional government services and in finding volunteers for political offices in small municipalities, the cantons tend to encourage voluntary mergers of municipalities. This led to
1911-405: Is common in the UK, especially when associated with a regular investment plan. With this arrangement regular contributions are made to a separate investment plan designed to build up a lump sum to repay the mortgage at maturity. This type of arrangement is called an investment-backed mortgage or is often related to the type of plan used: endowment mortgage if an endowment policy is used, similarly
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#17328583821702002-413: Is generally required. In some countries with currencies that tend to depreciate, foreign currency mortgages are common, enabling lenders to lend in a stable foreign currency, whilst the borrower takes on the currency risk that the currency will depreciate and they will therefore need to convert higher amounts of the domestic currency to repay the loan. In addition to the two standard means of setting
2093-649: Is pastures. All the water in the municipality is flowing water. The municipality is located in the Zofingen district, at the confluence of the Murg river into the Aare river. It is on the border between the Canton of Aargau and the Canton of Bern . It consists of the village of Murgenthal and the hamlets of Walliswil, Balzenwil, Glashütten and Riken. The blazon of the municipal coat of arms
2184-415: Is settled (buildings or roads), 0.22 km (0.085 sq mi) or 1.2% is either rivers or lakes. Of the built up area, housing and buildings made up 4.2% and transportation infrastructure made up 3.1%. Out of the forested land, 61.7% of the total land area is heavily forested and 1.1% is covered with orchards or small clusters of trees. Of the agricultural land, 19.3% is used for growing crops and 7.7%
2275-532: Is the primary mechanism used in many countries to finance private ownership of residential and commercial property (see commercial mortgages ). Although the terminology and precise forms will differ from country to country, the basic components tend to be similar: Many other specific characteristics are common to many markets, but the above are the essential features. Governments usually regulate many aspects of mortgage lending, either directly (through legal requirements, for example) or indirectly (through regulation of
2366-432: Is to make regular payments toward the principal and interest over a set term, commonly referred to as (self) amortization in the U.S. and as a repayment mortgage in the UK. A mortgage is a form of annuity (from the perspective of the lender), and the calculation of the periodic payments is based on the time value of money formulas. Certain details may be specific to different locations: interest may be calculated on
2457-402: The 2010 foreclosure crisis . In the United States, the mortgage loan involves two separate documents: the mortgage note (a promissory note ) and the security interest evidenced by the "mortgage" document; generally, the two are assigned together, but if they are split traditionally the holder of the note and not the mortgage has the right to foreclose. For example, Fannie Mae promulgates
2548-798: The Bürgerrecht (citizenship), regardless of where they were born or where they may currently live. Instead of the place of birth , Swiss legal documents, e.g. passports, contain the Bürgerort (place of citizenship, or place of origin ). The Bürgergemeinde also often holds and administers the common property in the village for the members of the community. Each canton determines the powers and responsibilities of its municipalities. These may include providing local government services such as education, medical and social services, public transportation, and tax collection. The degree of centralization varies from one canton to another. The federal constitution protects
2639-649: The Federal National Mortgage Association (known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (known as Freddie Mac). The US mortgage sector has been the center of major financial crises over the last century. Unsound lending practices resulted in the National Mortgage Crisis of the 1930s , the savings and loan crisis of the 1980s and 1990s and the subprime mortgage crisis of 2007 which led to
2730-601: The Olten -Bern line was built in Murgenthal. The wooden bridge was built over the Aare river to Fulenbach in 1863. With the railroad and access to the Rotkanal , several factories were built in Murgenthal. In 1856 the Grossmann (later Künzli & Co.) weaving factory opened. In 1881 Arnold Künzli founded the knitting factory of His & Cie, which operated until 1976 in Murgenthal. Additionally,
2821-414: The cost of a mortgage loan (fixed at a set interest rate for the term, or variable relative to market interest rates), there are variations in how that cost is paid, and how the loan itself is repaid. Repayment depends on locality, tax laws and prevailing culture. There are also various mortgage repayment structures to suit different types of borrower. The most common way to repay a secured mortgage loan
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2912-429: The following formula : A = P ⋅ r ( 1 + r ) n ( 1 + r ) n − 1 {\displaystyle A=P\cdot {\frac {r(1+r)^{n}}{(1+r)^{n}-1}}} where: The main alternative to a principal and interest mortgage is an interest-only mortgage , where the principal is not repaid throughout the term. This type of mortgage
3003-428: The tertiary sector , with 110 businesses in this sector. In 2000 there were 1,412 workers who lived in the municipality. Of these, 992 or about 70.3% of the residents worked outside Murgenthal while 419 people commuted into the municipality for work. There were a total of 839 jobs (of at least 6 hours per week) in the municipality. Of the working population, 10.1% used public transportation to get to work, and 53.7% used
3094-594: The 17th century. School houses were built in 1825 in Glashütten, 1826 in Balzenwil, 1842 in Riken and 1883 in Murgenthal. Murgenthal has an area, as of 2009, of 18.65 square kilometers (7.20 sq mi). Of this area, 5.18 km (2.00 sq mi) or 27.8% is used for agricultural purposes, while 11.71 km (4.52 sq mi) or 62.8% is forested. Of the rest of the land, 1.51 km (0.58 sq mi) or 8.1%
3185-616: The Aare river upstream, the three Seeland lakes being used to absorb the crest of the flood, until the end of the overflow of the Emme river. The system was complemented by the Flumenthal dam during the Second Jura water correction . Municipalities of Switzerland Municipalities ( German : Gemeinden , Einwohnergemeinden or politische Gemeinden ; French : communes ; Italian : comuni ; Romansh : vischnancas ) are
3276-462: The Governor of Aarburg , Jacob Wyss, build the 8.5 km (5.3 mi) Rotkanal (Red Canal) which transported water from the head waters of the Murg river to the meadows at Rothrist . Between 1798 and 1802 it was part of the Canton of Bern. Since 1803 it belongs to the canton of Aargau. Until 1900 the village of Murgenthal was part of the municipality of Riken. In 1901 the municipality of Riken joined
3367-472: The HECM (Home Equity Conversion Mortgage). Unlike standard mortgages (where the entire loan amount is typically disbursed at the time of loan closing) the HECM program allows the homeowner to receive funds in a variety of ways: as a one time lump sum payment; as a monthly tenure payment which continues until the borrower dies or moves out of the house permanently; as a monthly payment over a defined period of time; or as
3458-405: The UK and U.S., 25 to 30 years is the usual maximum term (although shorter periods, such as 15-year mortgage loans, are common). Mortgage payments, which are typically made monthly, contain a repayment of the principal and an interest element. The amount going toward the principal in each payment varies throughout the term of the mortgage. In the early years the repayments are mostly interest. Towards
3549-465: The UN Economic Commission for Europe compared German, US, and Danish mortgage systems. The German Bausparkassen (savings and loans associations) reported nominal interest rates of approximately 6 per cent per annum in the last 40 years (as of 2004). Bausparkassen are not identical with banks that give mortgages. In addition, they charge administration and service fees (about 1.5 per cent of
3640-621: The US, foreign nationals due to their unique situation face Foreign National mortgage conditions. Flexible mortgages allow for more freedom by the borrower to skip payments or prepay. Offset mortgages allow deposits to be counted against the mortgage loan. In the UK there is also the endowment mortgage where the borrowers pay interest while the principal is paid with a life insurance policy. Commercial mortgages typically have different interest rates, risks, and contracts than personal loans. Participation mortgages allow multiple investors to share in
3731-440: The applicant has provided as to income, employment, credit history and the value of the home being purchased via an appraisal. An appraisal may be ordered. The underwriting process may take a few days to a few weeks. Sometimes the underwriting process takes so long that the provided financial statements need to be resubmitted so they are current. It is advisable to maintain the same employment and not to use or open new credit during
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3822-403: The autonomy of municipalities within the framework set out by cantonal law. Municipalities are generally governed by an executive council headed by a president or mayor . Legislative authority is exercised by a town meeting of all citizens, or by a municipal parliament, depending on the size of the municipality, and on cantonal and municipal law. In some cantons, foreigners who have lived for
3913-425: The average number of residents per living room was 0.56 which is about equal to the cantonal average of 0.57 per room. In this case, a room is defined as space of a housing unit of at least 4 m (43 sq ft) as normal bedrooms, dining rooms, living rooms, kitchens and habitable cellars and attics. About 59.8% of the total households were owner occupied, or in other words did not pay rent (though they may have
4004-422: The basis of a 360-day year, for example; interest may be compounded daily, yearly, or semi-annually; prepayment penalties may apply; and other factors. There may be legal restrictions on certain matters, and consumer protection laws may specify or prohibit certain practices. Depending on the size of the loan and the prevailing practice in the country the term may be short (10 years) or long (50 years plus). In
4095-401: The borrower becomes bankrupt or insolvent , the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first. In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where
4186-405: The borrower depends upon the credit risk in addition to the interest rate risk. The mortgage origination and underwriting process involves checking credit scores, debt-to-income, downpayments (deposits), assets, and assessing property value. Jumbo mortgages and subprime lending are not supported by government guarantees and face higher interest rates. Other innovations described below can affect
4277-504: The confluence of the Aare and the Emme rivers. When the Emme river flow increases, the flow of the Aare river downstream of their confluence also increases accordingly, which may cause flooding downstream in the cantons of Solothurn and of Aargau . Thus, the Status sets the speed that the Aare should not exceed: if the flow increases too much, then the regulating dam Port must limit the flow of
4368-407: The country concerned, and the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably. The lender's rights over the secured property take priority over the borrower's other creditors , which means that if
4459-429: The creditworthiness, such as income tax returns, pay stubs, etc. the specifics will vary from location to location. Income tax incentives usually can be applied in forms of tax refunds or tax deduction schemes. The first implies that income tax paid by individual taxpayers will be refunded to the extent of interest on mortgage loans taken to acquire residential property. Income tax deduction implies lowering tax liability to
4550-525: The criteria on new lending on an interest-only basis. The problem for many people has been the fact that no repayment vehicle had been implemented, or the vehicle itself (e.g. endowment/ISA policy) performed poorly and therefore insufficient funds were available to repay balance at the end of the term. Moving forward, the FSA under the Mortgage Market Review (MMR) have stated there must be strict criteria on
4641-472: The debt each year. These arrangements are variously called reverse mortgages , lifetime mortgages or equity release mortgages (referring to home equity ), depending on the country. The loans are typically not repaid until the borrowers are deceased, hence the age restriction. Through the Federal Housing Administration , the U.S. government insures reverse mortgages via a program called
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#17328583821704732-422: The demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector (that is, through short-term deposits) or through the capital markets through a process called "securitization", which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations. According to Anglo-American property law ,
4823-431: The end of the mortgage, payments are mostly for principal. In this way, the payment amount determined at outset is calculated to ensure the loan is repaid at a specified date in the future. This gives borrowers assurance that by maintaining repayment the loan will be cleared at a specified date if the interest rate does not change. Some lenders and 3rd parties offer a bi-weekly mortgage payment program designed to accelerate
4914-697: The exercise of political rights for everyone except the members of the Bürgergemeinde . In the Regeneration era (1830–1848), the liberal revolutions of the common people helped to restore some rights again in a few cantons. In other cantons, the Bürgergemeinden were able to maintain power as political communities. In the city of Zürich it was not until the Municipal Act of 1866 that the political municipality came back into existence. The relationship between
5005-568: The extent of interest rate paid for the mortgage loan. Some lenders may also require a potential borrower have one or more months of "reserve assets" available. In other words, the borrower may be required to show the availability of enough assets to pay for the housing costs (including mortgage, taxes, etc.) for a period of time in the event of the job loss or other loss of income. Many countries have lower requirements for certain borrowers, or "no-doc" / "low-doc" lending standards that may be acceptable under certain circumstances. Many countries have
5096-460: The federal election, a total of 854 votes were cast, and the voter turnout was 43.5%. The historical population is given in the following table: As of 2007, Murgenthal had an unemployment rate of 2.46%. As of 2005, there were 99 people employed in the primary economic sector and about 40 businesses involved in this sector. 221 people are employed in the secondary sector and there are 41 businesses in this sector. 483 people are employed in
5187-402: The form of a collateral for a benefit (loan)". Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property (for example, their own business premises, residential property let to tenants, or an investment portfolio ). The lender will typically be a financial institution, such as a bank , credit union or building society , depending on
5278-406: The funds will be repaid (usually considered a function of the creditworthiness of the borrower); that if they are not repaid, the lender will be able to foreclose on the real estate assets; and the financial, interest rate risk and time delays that may be involved in certain circumstances. During the mortgage loan approval process, a mortgage loan underwriter verifies the financial information that
5369-454: The higher the LTV, the higher the risk that the value of the property (in case of foreclosure) will be insufficient to cover the remaining principal of the loan. Since the value of the property is an important factor in understanding the risk of the loan, determining the value is a key factor in mortgage lending. The value may be determined in various ways, but the most common are: In most countries,
5460-413: The lenders borrow money, therefore, affects the cost of borrowing. Lenders may also, in many countries, sell the mortgage loan to other parties who are interested in receiving the stream of cash payments from the borrower, often in the form of a security (by means of a securitization ). Mortgage lending will also take into account the (perceived) riskiness of the mortgage loan, that is, the likelihood that
5551-409: The loan against the value of the property. Therefore, a mortgage loan in which the purchaser has made a down payment of 20% has a loan to value ratio of 80%. For loans made against properties that the borrower already owns, the loan to value ratio will be imputed against the estimated value of the property. The loan to value ratio is considered an important indicator of the riskiness of a mortgage loan:
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#17328583821705642-534: The loan amount). However, in the United States, the average interest rates for fixed-rate mortgages in the housing market started in the tens and twenties in the 1980s and have (as of 2004) reached about 6 per cent per annum. However, gross borrowing costs are substantially higher than the nominal interest rate and amounted for the last 30 years to 10.46 per cent. In Denmark, similar to the United States mortgage market, interest rates have fallen to 6 per cent per annum. A risk and administration fee amounts to 0.5 per cent of
5733-646: The lowest level of administrative division in Switzerland. Each municipality is part of one of the Swiss cantons , which form the Swiss Confederation . In most cantons, municipalities are also part of districts or other sub-cantonal administrative divisions. There are 2,131 municipalities as of January 2024 . Their populations range between several hundred thousand ( Zürich ), and a few dozen people ( Kammersrohr , Bister ), and their territory between 0.32 km² ( Rivaz ) and 439 km² ( Scuol ). The beginnings of
5824-567: The modern municipality system date back to the Helvetic Republic . Under the Old Swiss Confederacy , citizenship was granted by each town and village to only residents. These citizens enjoyed access to community property and in some cases additional protection under the law. Additionally, the urban towns and the rural villages had differing rights and laws. The creation of a uniform Swiss citizenship, which applied equally for citizens of
5915-417: The mortgage payment; package loans add the costs of furnishings and other personal property to the mortgage. Buydown mortgages allow the seller or lender to pay something similar to points to reduce interest rate and encourage buyers. Homeowners can also take out equity loans in which they receive cash for a mortgage debt on their house. Shared appreciation mortgages are a form of equity release . In
6006-489: The mortgaged property apply, and may be tightly regulated by the relevant government. There are strict or judicial foreclosures and non-judicial foreclosures, also known as power of sale foreclosures. In some jurisdictions, foreclosure and sale can occur quite rapidly, while in others, foreclosure may take many months or even years. In many countries, the ability of lenders to foreclose is extremely limited, and mortgage market development has been notably slower. A study issued by
6097-462: The municipalities under cantonal or federal law. Municipalities are numbered by the Swiss Federal Office for Statistics (see Community Identification Number#Switzerland ). One or more postal codes (PLZ/NPA) can by assigned to a municipality or shared with other municipalities. Between 2011 and 2021 nine of the smallest municipalities merged into others as part of the effort to eliminate
6188-525: The municipality of Balzenwil to form the new municipality of Murgenthal. Under Bernese rule the villagers were part of the Wynau and Roggwil parishes . In 1817 a new parish was established and in 1901 its name was changed to the Riken Murgenthal parish. The romanesque revival parish church was built in 1852–54 in Glashütten. However, it was replaced in 1964 by a new building. In 1857, a railway station on
6279-436: The number of municipalities dropping by 384 between the end of 2010 and the beginning of 2019. Some municipalities designate themselves as "city" ( ville or Stadt ) or as "village" ( Dorf ). These designations result from tradition or local preference – for example, several small municipalities designated as cities held city rights in medieval times – and normally do not impact the legal or political rights or obligations of
6370-525: The old towns and their tenants and servants, led to conflict. The wealthier villagers and urban citizens held rights to forests, common land and other municipal property which they did not want to share with the "new citizens", who were generally poor. The compromise solution, which was written into the municipal laws of the Helvetic Republic, is still valid today. Two politically separate but often geographically similar organizations were created. The first,
6461-424: The options of paying the interest on a monthly basis. By paying off the interest means the balance will remain level for the rest of their life. This market is set to increase as more retirees require finance in retirement. For older borrowers (typically in retirement), it may be possible to arrange a mortgage where neither the principal nor interest is repaid. The interest is rolled up with the principal, increasing
6552-522: The outstanding debt. In addition, an acquisition fee is charged which amounts to one per cent of the principal. The mortgage industry of the United States is a major financial sector. The federal government created several programs, or government sponsored entities , to foster mortgage lending, construction and encourage home ownership . These programs include the Government National Mortgage Association (known as Ginnie Mae),
6643-435: The participants or the financial markets, such as the banking industry), and often through state intervention (direct lending by the government, direct lending by state-owned banks, or sponsorship of various entities). Other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system. Mortgage loans are generally structured as long-term loans,
6734-401: The payoff of the loan. Similarly, a mortgage can be ended before its scheduled end by paying some or all of the remainder prematurely, called curtailment. An amortization schedule is typically worked out taking the principal left at the end of each month, multiplying by the monthly rate and then subtracting the monthly payment. This is typically generated by an amortization calculator using
6825-651: The periodic payments for which are similar to an annuity and calculated according to the time value of money formulae. The most basic arrangement would require a fixed monthly payment over a period of ten to thirty years, depending on local conditions. Over this period the principal component of the loan (the original loan) would be slowly paid down through amortization. In practice, many variants are possible and common worldwide and within each country. Lenders provide funds against property to earn interest income , and generally borrow these funds themselves (for example, by taking deposits or issuing bonds ). The price at which
6916-408: The political municipality and the Bürgergemeinde was often dominated by the latter's ownership of community property. Often the administration and profit from the property were totally held by the Bürgergemeinden , leaving the political municipality dependent on the Bürgergemeinde for money and use of the property. It was not until the political municipality acquired rights over property that served
7007-447: The political voting and electoral body rights from the Bürgergemeinde . In the cities, the percentage of members in the Bürgergemeinde in the population was reduced as a result of increasing emigration to the cities. This led to the Bürgergemeinde losing its former importance to a large extent. However, the Bürgergemeinde has remained, and it includes all individuals who are citizens of the Bürgergemeinde , usually by having inherited
7098-596: The population are between 0 and 9 years old and 332 teenagers or 11.6% are between 10 and 19. Of the adult population, 387 people or 13.5% of the population are between 20 and 29 years old. 397 people or 13.8% are between 30 and 39, 461 people or 16.1% are between 40 and 49, and 433 people or 15.1% are between 50 and 59. The senior population distribution is 271 people or 9.4% of the population are between 60 and 69 years old, 198 people or 6.9% are between 70 and 79, there are 106 people or 3.7% who are between 80 and 89, and there are 22 people or 0.8% who are 90 and older. As of 2000
7189-515: The property may then be sold. Any amounts received from the sale (net of costs) are applied to the original debt. In some jurisdictions, mortgage loans are non-recourse loans: if the funds recouped from sale of the mortgaged property are insufficient to cover the outstanding debt, the lender may not have recourse to the borrower after foreclosure. In other jurisdictions, the borrower remains responsible for any remaining debt. In virtually all jurisdictions, specific procedures for foreclosure and sale of
7280-498: The public (such as schools, fire stations, etc.) and taxes, that they obtained full independence. For example, in the city of Bern, it was not until after the property division of 1852 that the political municipality had the right to levy taxes. It was not until the Federal Constitution of 1874 that all Swiss citizens were granted equal political rights on local and Federal levels. This revised constitution finally removed all
7371-454: The rates as well. Upon making a mortgage loan for the purchase of a property, lenders usually require that the borrower make a down payment (called a deposit in English law); that is, contribute a portion of the cost of the property. This down payment may be expressed as a portion of the value of the property (see below for a definition of this term). The loan to value ratio (or LTV) is the size of
7462-431: The repayment vehicle being used. As such the likes of Nationwide and other lenders have pulled out of the interest-only market. A resurgence in the equity release market has been the introduction of interest-only lifetime mortgages. Where an interest-only mortgage has a fixed term, an interest-only lifetime mortgage will continue for the rest of the mortgagors life. These schemes have proved of interest to people who do like
7553-456: The roll-up effect (compounding) of interest on traditional equity release schemes. They have also proved beneficial to people who had an interest-only mortgage with no repayment vehicle and now need to settle the loan. These people can now effectively remortgage onto an interest-only lifetime mortgage to maintain continuity. Interest-only lifetime mortgage schemes are currently offered by two lenders – Stonehaven and more2life. They work by having
7644-454: The same year. It was open a total of 131 days with average of 4 hours per week during that year. The municipality has a railway station, Murgenthal , on the Olten–Bern line . It has regular service to Langenthal and Baden . The Murgenthal Status stipulates that the flow of the Aare must not exceed 850m/s (30,000 cu ft/s) at the gauge of Murgenthal's station which is located downstream of
7735-586: The secured property (" foreclosure " or " repossession ") to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can also be described as "a borrower giving consideration in
7826-472: The smallest communities. Only Bister has not merged into a new municipality although the smallest municipality is now Kammersrohr with a population of just 32. In addition to the municipalities as basic territorial political subdivisions, a number of other local subdivisions exist in several cantons. These include: Mortgage loan A mortgage loan or simply mortgage ( / ˈ m ɔːr ɡ ɪ dʒ / ), in civil law jurisdictions known also as
7917-659: The so-called municipality, was a political community formed by election and its voting body consists of all resident citizens. However, the community land and property remained with the former local citizens who were gathered together into the Bürgergemeinde /bourgeoisie. During the Mediation era (1803–1814), and especially during the Restoration era (1814–1830), many of the gains toward uniform citizenship were lost. Many political municipalities were abolished and limits were placed on
8008-540: The total) out of a total of 1,219 homes and apartments. There were a total of 62 empty apartments for a 5.1% vacancy rate. As of 2007, the construction rate of new housing units was 3.2 new units per 1000 residents. In the 2007 federal election the most popular party was the SVP which received 48.67% of the vote. The next two most popular parties were the SP (13.32%), and the FDP (12.83%). In
8099-470: The underwriting process. Any changes made in the applicant's credit, employment, or financial information could result in the loan being denied. There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation and legal requirements. The two basic types of amortized loans are the fixed rate mortgage (FRM) and adjustable-rate mortgage (ARM) (also known as
8190-425: The word mortgage has become the generic term for a loan secured by such real property . As with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time, typically 30 years in the United States. All types of real property can be, and usually are, secured with a mortgage and bear an interest rate that is supposed to reflect the lender's risk. Mortgage lending
8281-417: Was not uncommon for interest only mortgages to be arranged without a repayment vehicle, with the borrower gambling that the property market will rise sufficiently for the loan to be repaid by trading down at retirement (or when rent on the property and inflation combine to surpass the interest rate). Recent Financial Services Authority guidelines to UK lenders regarding interest-only mortgages have tightened
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