What is a Home loan?
Home loan is the sum of money a bank or financial institution lends you to help you buy your dream home. By taking a home loan from a bank or a housing finance company you pledge your home as the lender’s security for repayment of your loan. The bank or financial institution will hold the title or deed to the property till the loan has been paid back with the interest due for it. Home loans are generally taken for long tenures as the loan amount is usually a huge sum. A home loan can be taken anywhere between 5 and 30 years. The amount of loan one is eligible for is dependent on the individual’s credit profile.
The cherished dream that throbs in your heart is to have a beautiful home of your own. If you are already a proud owner of a home, then maybe you are dreaming to renew the worn out look of your old home. Be prepared to tread a complex path to buy a proper home or to renovate your home perfectly. Availing an easy home loan is the ideal way to buy a home. There are various types of loans you can avail of according to your needs. You can take home equity loans, home construction loan, manufactured home loans, mobile home loans, home improvement loans and interest free loans – whatever suits your want. Home Mortgage Loan The best way to get a home loan is by keeping that home as mortgage. Basically you have to put the home as collateral in lieu of the debt you have taken to buy that home. As you clear off the debt the home will be all yours. There are two types of rates in a home mortgage loan. The fixed rate home mortgage loan where the interest rate and the monthly repayment charge remai
