About Mortgage

What is a mortgage?

Mortgage belongs to real state, mortgage is a type of a loan or a legal agreement for helping those people who are interested to invest in property. Bank helps them to pay property amount to the owner or builder and bank takes its money back within a long term period with interest. The amount of your loan will be determined by your home’s value. Mortgage loans are secured by a borrower’s home. This means that if you are unable to make the monthly payment for the mortgage, the lender can foreclose and take your home.

Example of mortgagee.

Suppose a person is interested to buy a home, but he does not have enough money. In this case he can apply for mortgages. The bank will divide your loan amount into easy instalment, that you will pay monthly. In this way a person can buy homes with easy instalment.

The bank will must take its amount back with interest and in case you failed to pay the instalment amount, than a bank will lock your property and take in its custody. The interest rate may be fixed or variable during loan period. You can read about interest in agreement deed.

A mortgage loan is usually 20 to 50 years, mortgage loan interest depends on the market if there are many buyers in the market than the loan interest goes height and if there is less buyer at market, than loan interest will be cheap.

Where you can apply for mortgages.

There are many banks who provide mortgagee loan, but all bank's interest are different, and processing fees. The processing fee is, a basic charge of your loan, that you have to pay. It is normally 1 to 2 percent of the loan amount.

Many property sellers provide its own mortgagee loan with some attractive offer.

Before applying for a mortgage.

Remember

Mortgage Calculator

Use this mortgage calculator to calculate your plan.