A lot of people feel that a Loan and a Mortgage are two different things altogether. What needs to be understood is that fact that every mortgage is a loan but not every loan is a mortgage. And yes, there is definitely no need to be scared of a mortgage, especially when you are confident that you will pay it back on time.
There’s a lot more about mortgage which might not be clear to people. Let us start by clarifying what exactly is a Mortgage? Mortgage is simply a type of loan allowing a borrower to borrow money from a lender. However, the reason why it is different from the other types of loan is because in a mortgage loan, the borrower needs to pledge a property like a car or a house as collateral to the lender till the time the full loan payment has been paid back.
The word mortgage meaning the “death pledge” according to the French Law does not exactly mean a “death vow”, but it is just a hypothetical similarity between the two which is pointed out. This can be said because a borrower hypothetically puts at stake, something very precious or valuable, to acquire such a loan. Mostly, such kind of mortgage loans carry high loan amount limit and can be taken up to be repaid at a stretch of longer loan period like 15 to 30 years.
Other than property or real estate, a mortgage or collateral can be pledged to the lender in various other forms like a vehicle, jewelry, financial bonds or any other thing that holds high value for both, the borrower as well as the lender.
But in most cases, mortgage loans are generally considered to have real estate as collateral for them. Of course, getting a mortgage is not an easy task as well, especially when such a high loan amount is being taken into consideration. Many factors like rate of interest, loan term and the loan amount etc are needed to be kept in mind while applying for a mortgage loan.
The first step to acquiring a mortgage loan is to find and approach a genuine mortgage lender. An honest lender will give you an accurate and true picture about what your loan will have and what would you be expected to pay as a gross repayment at the end of the loan term including the rate of interest. He would also tell you exactly the amount of installments that you would be required to pay every month in order to payback the entire loan on time. He would also be wise enough to make sure at his end that you would be able to pay back the entire amount you are loaning, easily. He would inquire about your current monthly income, estimate the price of your collateral and also help you in finding out how much a loan amount can you afford to borrow.
At TheLoanBazaar.com, we give you the most suitable loan offers you are looking for. We take care to let you know all that would help you make a better choice while choosing your loan plan. We will also give you a true estimate about the monthly payments you will be expected to pay and the rate of interest we will be charging, keeping no information or fee hidden with us. Knowing the possible lengths of the loan term is very important, especially when a higher rate of interest is concerned. Usually, the wider your loan term, the lower is your interest rate, and the narrow your loan term spread, the higher your interest rate.
Always look for a loan plan that offers you to get a mortgage loan which has the apt length, affordable interest rates, and no hidden charges or fees.
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