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30 Year Mortgage Rates Drop The Associated Press

The Money Times

30-Year Mortgage Rates Drop The Associated Press -6 hours ago WASHINGTON (AP) — Mortgage rates fell sharply this week with rates on 30-year mortgages dropping to the lowest level in more than two years. ... US 30-year mortgage rates hit two-year lowReuters Bankrate: Credit Jitters Rattle Mortgage RatesReuters Mortgage rates at lowest level in 2 yearsCNNMoney.com Sacramento Bee - Smartmoney.com all 71 news articles

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Types of Mortgage Instruments
Two types of mortgage instruments are used in the United States: the mortgage (sometimes called a mortgage deed) and the deed of trust.


The mortgage
In all but a few states, a mortgage creates a lien on the title to the mortgaged property. Foreclosure of that lien almost always requires a judicial proceeding declaring the debt to be due and in default and ordering a sale of the property to pay the debt.


The deed of trust
The deed of trust is a deed by the borrower to a trustee for the purposes of securing a debt. In most states, it also merely creates a lien on the title and not a title transfer, regardless of its terms. It differs from a mortgage in that, in many states, it can be foreclosed by a non-judicial sale held by the trustee. It is also possible to foreclose them through a judicial proceeding.

Most "mortgages" in California are actually deeds of trust. The effective difference is that the foreclosure process can be much faster for a deed of trust than for a mortgage, on the order of 3 months rather than a year.

Deeds of trust to secure repayments of debts should not be confused with deeds to trustees to create trusts for other purposes, such as estate planning. Though there are superficial similarities in the form, many states hold deeds of trust to secure repayment of debts do not create true trust arrangements.