Mortgage Loan: Best Solution for All Financial Troubles

When someone has an urgent requirement for money to meet their demands the first thing, they levitate towards is applying for a loan. However, taking a personal loan may not always be the wisest decision that one could make as the interest rates are higher and that makes repayment difficult.

Here is where a loan against property is a lucrative option due to its competitive interest rates, high-value loan, long-term tenor, and affordable monthly installments.

What is a Mortgage?

A mortgage loan is wherein a borrower may pledge their property such as a residential complex, commercial, or even a plot of land as collateral and borrow money against it. Unlike other loans, a mortgage loan will allow you to enjoy the benefits of your property during the tenor of your loan. You will get possession of your property once you have repaid the borrowed amount along with its interest.

What is a Reverse Mortgage?

In the case of a Reverse Mortgage the borrower does not pay monthly installments to a bank, but the bank makes payments to the borrower. The borrower may only pay the interest on the amount that the borrower receives and gets to enjoy the benefits of the property.

The collateral remains the same in both forward and reserve mortgages. If the borrower turned owner dies or moves away then the proceeds of the house when sold go towards the repayment of the borrowed principal, interest, and other fees. Anything over and above the valuation goes to the borrower if living or next of kin.

What are the benefits of a Mortgage?

• A mortgage loan can be used towards any expense such as wedding expense, abroad education expense, house renovation or even clearing your existing debts. A mortgage loan does not have a fixed purpose like housing loans where the borrower may only use the funds towards the purchase of a property. There are no restrictions to the end use of the loan amount.
• A mortgage loan can be availed by both salaried employees and self-employed individuals and businessmen. Although the eligibility criteria may differ from each other.
• The quantum of loan that can receive is very high and depending on the valuation of the property you may even secure a loan of up to 70-75% of the market value.
• Since this is a secured loan, the lenders are less hesitant to grant these loans, and the documentation required is very minimal making this extremely hassle-free compared to other forms of unsecured loans. Although you must ensure the authenticity of your documents as failing to do so may end up in rejection. Apart from this once all the documentation and valuation are in order the disbursal of the loan amount is fairly quick.
• Another benefit of a mortgage loan is that the entire loan account can be transferred to a different lender in case a lender is offering a longer tenor rate, lower interest rate, or lower monthly installments. Depending on these factors the borrower can switch between lenders.

How to apply for a Mortgage loan?

Here are the steps to apply for a Mortgage loan:

Step 1: Upon choosing the lender of your choice you may visit their respective website and proceed to their Mortgage category.

Step 2: It is important to check if you are eligible before applying for a Mortgage loan

Step 3: Proceed to check the other factors such as mortgage loan interest rate, tenor, banking charges, registration charges, and monthly installments

Step 4: Upon checking all the details that are being offered you may proceed to fill in the application form and apply online

Step 5: Once the bank verifies the details submitted, they will get in touch with you to finish the remaining formalities

How to calculate your Mortgage loan?

These days there are a lot of accurate, fast, and easy-to-use Mortgage calculators available online. These calculators allow you to select the principal amount required, the tenor of your choice, and will help you understand your payable monthly installments.

Here is how you can use an online calculator:

Step 1: Select any online calculator available

Step 2: Input your desired loan principal amount, tenor, and the rate of interest that you are being offered.

Step 3: After you have input your details the calculator will show your interest payable, the total amount due, and your monthly installments applicable

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