| The word mortgage has been derived from a French | | | | i.e. a lump some amount. |
| word 'mort' meaning death that means 'agreement until | | | | The cumbersome process of mortgage loan leaves |
| death'. Mortgage loan refers to a loan secured by | | | | most of us worn out. It is due to the lack of adequate |
| residential property and often used for a purpose to | | | | information and knowledge to move about in the |
| lock a real estate. Mortgage refers to a pledge to | | | | mortgage loan process. Firstly, it is important to always |
| repay the loan borrowed from a financial institution. | | | | look for a mortgage loan refinancing corporation. We |
| These types of loans are available at a lower price as | | | | can save a lot of time and energy because they are |
| compared to other types of loans because the value | | | | professionals and offer the best rates and term |
| of property risk for the lender. | | | | periods in town. Secondly, always look for experienced |
| In the present market there are a variety of mortgage | | | | and qualified loan brokers so that there is no fraud. |
| loans available, to choose the best amongst so many | | | | Thirdly, always plan before moving ahead; make sure |
| is difficult, but a comparative study of a few most | | | | to calculate the repayment structure, never overspend |
| common and popular types loan are as follows: | | | | on the brokers fees or commission. |
| ∑ Fixed Mortgage Loan - this is the most | | | | Thus, keeping a few points in mind can help you avail |
| widespread and popular loan where the interest rate | | | | the right type of mortgage loan. |
| remains fixed throughout the tenure of the loan. | | | | People who apply for mortgage loan also get |
| ∑ Variable Rate Mortgage - these types of loan | | | | benefited in several ways; the first benefit is that there |
| will have a fluctuation throughout the life of loan. | | | | are ample of mortgage loans available in market. |
| ∑ Adjustable Rate Mortgage - this loan has a | | | | Mortgage loan are available easily and worldwide. The |
| unstable rate of interest where interest payments | | | | interest rate also keeps fluctuating; it can either be |
| depends upon the high or low rates of interest | | | | fixed throughout or can even change as per the loan |
| prevailing in the market, i.e. when rates are low | | | | selection. Even the repayment amount can be |
| borrowers pay less whereas when rates are high | | | | changed; it can be either increased or decreased as |
| they pay more. | | | | per the requirement. Besides, the repayment structure |
| ∑ Convertible Loans - these types of loans are | | | | is also not fixed, borrower can repay back in variety |
| easily convertible that means when the interest rate is | | | | of ways as per his/her convenience, and it can be |
| too high one can easily convert the loan into a fixed | | | | paid on a monthly basis or yearly basis whichever suits |
| mortgage loan. | | | | the best. Another advantage is that during the interest |
| ∑ Balloon Loan - Balloon loan is a fixed rate | | | | period, the entire monthly payment is tax deductible. |
| convertible loan where the borrower has to pay some | | | | Interest rates on these loans are low and help you |
| amount monthly for a short term usually 5-7 years and | | | | save a lot of fund. |
| after that the repayment will be a one time payment | | | | |