Are you facing an emergency, which demands a lump sum? For the moderate-income group, it is not always possible to arrange a big amount of money to meet certain emergencies. So what option do you have? Well, things can become easy for you if you own a property. It can be your home, shop, or a piece of land. You can avail of a mortgage loan by keeping your property as collateral. If you are looking for the best mortgage interest rates, in that case, you need to do a bit of research. Many financial institutions are offering mortgage loans. However, to strike the best deal, some due diligence is required.
Some important features of a mortgage loan
Now that you know what a mortgage loan is, and what are sources you can avail it from, it is time to have a look at some of its features.
- Not all types of properties are accepted as collateral. Apicultural land is one of them.
- Usually, lenders accept those properties which are fully constructed. Under construction, properties are usually not accepted.
- It needs to be a freehold property and must come with a marketable value.
- The fact that a loan is being provided against collateral, which is your property; these loans are also known as a secured loan.
- The tenure of the loan is concerned, it can last up to 30 years, and you have the option of repaying the loan in EMIs.
- You have the option of customizing the mortgage loan to fit into your requirements.
What are the benefits of a mortgage loan?
There are many reasons why people tend to opt for a mortgage loan. Even though your property is kept as collateral, which carries a certain element of risk, mortgage loans come with few benefits. Here are some of them.
- You would be the legal owner of the property which you have kept as collateral.
- Since these are secured loans, hence the chances of approval are quite high.
- Compared to personal loans, the rate of interest charged on mortgage loans is much less.
- As far as repayment terms and tenures are concerned, mortgage loans are much more convenient as opposed to some other types of loans.
These are some of the important things which you need to know if you’re planning to apply for a mortgage loan. There are indeed many lenders and financial institutes which offer mortgage loans; however, you need to ensure that you have opted for a reputed and reliable source.