In ancient societies only the privileged were allowed to own property and the need for a mortgage system was not pressing.
But that all changed in the 18th and 19th centuries, when freedom and individual rights became the rallying cry for millions.
Early transactions involving property were conducted much differently than the way we do today Initially, the buyer was not able to gain access to the property until he loan was paid in full.
When the mortgages evolved, the term was for five years and the monthly payments were for the more interest only, with the principle due and payable at the of the five years.
The source of early funding was the money lender, now known as a mortgage broker.
Some used their own money, while many acted as conduits between investors and borrowers,charging a fee for their services.
The masses didn't have banks available to them and what developed were association, usually formed around ethnic or religious ties.
The most common association service was to purchase death benefits, but as reserves increased, they begun to lend money to members to purchase property.
In certain ethnic communities, these associations have survived in America to this day.
However, until the Great Depression of the 1930s, mortgage brokers provided the bulk of mortgage in the United States.
They thrived, filling a giant void in the financial industry, even issuing their own bonds to generate capital.
So Don't get caught in the trap there is a way to payoff your mortgage and save thousands of dollars in the process.