Sunday, 5 August 2018

Let’s understand the mortgage loan

Let’s understand the mortgage loan

A mortgage is a loan, which the bank or financial institution gives to your property. Having a mortgage here does not mean that the bank will take possession of your property. It only means that if you can not afford the loan in due course, then the bank will have the right to take possession of your property. Simply put, mortgage is a loan that you take as your mortgage. Generally, morgases are used to raise funds to buy a new house. But its many other functions, for example, can be used for starting a new business or expanding it, treating the child’s higher education.
If you can not afford a loan in a timely manner, then the lending mortgage can sell the property for debt recovery. From fixed time, the intent is from the period within which you have to repay the loan through EMI. This installment, which is a fixed time lag, is a part of both principal and interest. The repayment period depends on many reasons. The most important thing in this, is that you deposit as a down payment before buying a house.

Types of mortgages loan

-First interest rate loan The interest rates do not change in this mortgage.
-Moragance with second, floating rate, ie variable interest rate. The rate of interest on this type of loan decreases. But it does not go down from the base rate.
Closed Mortgage: Under this, the person taking the loan will have to pay the loan if he wants to pay the loan prematurely. Banks and financial institutions fix such fees.
-Open Mortgages: In such loans, if you repay loans before time, you do not have to pay it.

Required Documents

  • id proof
  • Proof of age
  • address proof
  • Passport size photo
  • Bank statement of last six months

How is the interest rate fixed

The interest rate for mortgages varies in different cases. Initially it depends on the willingness of the borrowing person and the ability to repay it. Banks and financial institutions find it in three ways-
Debt history
Proof Profile
The age of the borrowers
One way to get a mortgage is by going to a portal like a policy market and comparing different loans. From such a portal, you will know the morgues as per your requirement. When you compare it online, you can choose one of them according to your need.

What are the benefits

Many people wonder how the morgues is different from other types of loans. This is better than the following reasons:
Morges is a safe loan. Therefore, the borrowing person can request for a loan.
The repayment period is 25 years, which is more than the period of repayment of other types of loans.
Morgage is cheaper than other types of personal loans in terms of interest rates and processing fees.
Because of the secured loan, at least documents are needed for the mortgage and its approval is received quickly.

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