What is mortgage loan, benefits, types of mortgage loan, documents.

mortgage loan, which the bank or financial institution gives to your property. Having a mortgage here does not mean that the bank has taken possession of your property It only means that if you can not afford a loan in due time, the bank will have the right to take over your property. Simply put, a mortgage is a loan that you take as your mortgage. Normally, mortgages 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 in its expansion, treatment, child education for higher education.

mortgage loan

If you can not afford a loan in a timely manner, then the lender’s mortgage can sell the property for debt collection. From the 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 interval, is a part of both principal and interest. The repayment period depends on many reasons. The most important thing is the money that you deposit as a down payment before buying a house.

Benefits of a mortgage loan:

Many people wonder how the morgues are different from other types of loans. This is better than the following reasons:

Morges is a safe loan. Therefore, the person taking the loan can request more loan.

The repayment period is 25 years, which is more than the other types of loan repayment period.

  • mortgage 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.

Types of mortgages loan:

  • The fixed interest rate loan The interest rates do not change in this mortgage.
  •  floating rate ie mortgage with a variable interest rate. The rate of interest on this type of loan continues to decrease. 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 set such fees.
  • Open Mortgages: In such loans, if you repay before the loan, you will not have to pay it.

Required Documents for mortgage loan:

  • Id proof
  • Eyu Proof
  • address proof
  •  Passport size photo
  •  Bank statement of last six months

Interest rate of mortgage loan:

The interest rate for mortgages varies in different cases. Initially, it depends on the wishes of the borrowing person and the ability to repay it. Banks and financial institutions detect 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 needs.


You may also like...