A mortgage loan is something which people take from the bank or the financial institution inreturn of the property or the real estate kept as the collateral. In other words, we can define Mortgage loan as a loan against property. Sometimes, the problems hit very hard on theface of the person and become impossible for them to bounce back in the market or in thepersonal life so they ought to remember their old investment in the properties which theycan use in the current situation. On the other hand, people buy some real estate for thepurpose of investment and ready to collateral the same to start or add a new venture in theirkitty. The reason for theloancan be many but it is important in some of the other time in theentire life.
The complete concept of the Loan against property is different but easy for the people whoare ready to mortgage their house or any other property. In the case Mortgage loan also there is a lender and a borrower but only collateral is an additional term in the same. Herethe lender which is usually a bank and the borrower comes in with the agreement where theborrower receives the cash in hand in return of the property which he keeps as collateralwith the lender. The loan is a time specified loan given to borrower where he has to returnthe entire amount to the lender within the fixed span of time to get back his property. If theborrower fails, he will lose his property from his hand forever. The Mortgage loan calculatorworks similarly like other loans in the market.
Like other loans in the market, the mortgage loan is divided into categories for a better understanding of the people. The bank or the highest financial institutions have done the major segregation of the loan against property based on the interest that the borrowers pay to the lenders. They are of two types:
As the name suggests, it is a fixed agreement between the lender and the borrower with the fixed rate of interest. If the rate is the same for the entire loan period, then it becomes easy for the person to calculate the monthly installment and the liability he has. There will be no change in the documents till the loan is paid in the full amount.
Similarly, as the name suggests, this type of loan is based upon variables rate. The interest rate can change at any time of the year because it depends upon the external forces and decisions. The steps taken by the RBI or the performance of the economy and the stock market is the major point which brings change in the interest rate. In case there is no external effect, this loan might also remain constant like the other.
You thought to get the loan and you straightaway go to apply is not possible. You need to understand many things about instant loan against property and calculate your status before approaching the bank.
The financial institution cannot lend any type of loan to any individual in the society as the person has to fulfill some eligibility criteria to be legalized borrower of the loan. Similarly, there are some predefined eligibility criteria to get an instant mortgage loan.