Mortgage Loan in India
Mortgage Loan in India
A Mortgage loan is a type of bank loan extended against property or real estate, which is held by the loan-issuing bank as collateral. There are different kinds of Mortgage loans depending on the tenure of the loan and the type of interest paid on the loan, such as fixed or adjustable rates of interest. And, with Apna Loan Guru you will be able to access the entire scope of Mortgage loans in an easier manner.
A Mortgage loan might be approved for different purposes. Money can be extended as loan against property, in which case the money might be used for a different purpose. Alternatively, money can be extended as loan for the purpose of purchasing property which is then held as collateral by the bank extending the loan. In this case, the loan might be considered a home loan. In either case, the property does not belong to the original owner completely until the loan amount is paid off in full.
Sounds confusing? Well, Apna Loan Guru is here to help you out with the complicated legal procedures and make it easily accessible.
Paying off your Mortgage
A Mortgage loan is usually paid off in the form of monthly installments. The interest on the loan might be fixed or floating depending on the varying market value of the property in question. But Mortgage loans with fixed interests and paid off over extended periods such as tenures of 10, 12, or even 50 years constitute the most common category of Mortgage loans. We at Apna Loan Guru offer all the possible variations that will undoubtedly be of great help to all kinds of loan seekers.
You might also want to be accustomed to a few legal terms before you delve any deeper with the information. The period over which a Mortgage loan is paid off is called the amortization period. In other words, as the monthly installments for the repayment of the loan are collected by the bank issuing the loan, the entire mortgage is gradually paid off or amortized.
A Guiding Process
Sometimes a Mortgage loan recipient can choose to pay off the current loan by taking out a different loan, commonly called refinancing. At Apna Loan Guru, we also employ experts to guide you through this process. The advantages of refinancing might include a lower rate of interest or a shorter repayment period. It might also involve a simple switch in the type of interest paid on the loan, namely fixed and floating or adjustable. In each case, the purpose of refinancing is always to make the repayment of the loan easier for the borrower. However, the borrower needs to calculate the actual gains from a refinancing very carefully before undertaking the process.
In addition, a property that is already mortgaged can be used for taking out a second loan, or even multiple loans, which are then termed, subordinate mortgages. In such a case, if there is an issue of foreclosure, the proceeds from the liquidation of the property are used to first pay off the primary or first mortgage in full, before subordinate mortgages are paid off. This is why extending a subordinate mortgage is a risk for a lender, and usually involves a higher rate of interest than the first or primary mortgage.
At Apna Loan Guru you will not only get reliable and validated information about various kinds of Mortgage loans but will also be able to receive expert help from our trained and experienced professionals for selecting a loan that suits you the best!
