A mortgage is a loan which is secured by collateral of real property, documented and evidenced by a mortgage note.
A mortgage can apply to any facet of real property. In timeshares, your monthly costs tend to be put towards your mortgage loan, while your maintenance fees and club ownership fees go towards the property and timeshare company itself. Timeshare mortgages tend to be fixed-rate, meaning that you will pay the same amount of interest during the entire lifespan of the loan. In addition, once your mortgage is paid in full, you may also be subject to pay a capital reserves tax, which would be used as a surplus towards any potential renovations or repairs to the property in the future.
If you have any additional questions regarding mortgage loans and how they are incorporated into your timeshare, feel free to contact us to speak with a licensed agent.