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In this day and age where banks aren’t even lending to well qualified buyers, knowing how your principal investment will be returned is crucial.
When you hear the word mortgage, most of us think of a 30 year term, a low fixed interest rate, or perhaps even our home that is secured as collateral for repaying of the loan. The modern day concept of a mortgage loan is, historically speaking, a relatively new idea dating back to the 1930’s. Originally, the idea was forged not by banks, but by insurance companies who provided the debt instruments not looking to collect interest on their money, but instead in the hopes that the borrower defaulted on the loan so they could then subsequently own the real estate at a reduced price. While this would be deemed an abusive practice for a... read more