LOADING

Type to search

What Is a Mortgage Loan? Things You Need to Know About It

Mortgage

What Is a Mortgage Loan? Things You Need to Know About It

Share

Do you want to buy a property or raise funds for financial emergencies? Consider taking a mortgage loan! A mortgage loan is highly suitable for borrowers in need of contingent funds. Therefore, you can use this loan amount to finance a wedding, education, medical emergencies, etc. Moreover, salaried employees, self-employed individuals, business people, etc., can borrow a mortgage loan quickly.

Here’s everything you need to know about a mortgage loan.

Mortgage Loan

What Is a Mortgage Loan?

A mortgage loan is a secured loan borrowed against collateral – usually an immovable asset like your house, non-agricultural land, or commercial property. The lender provides a principal loan amount and levies an interest rate on it. You can repay the mortgage loan using affordable monthly installments or EMIs.

Your asset remains in the lender’s possession until the entire loan amount is repaid in full. Besides, the lender reserves a legal claim over your help for the whole loan tenure. In case of a payment default or a violation of the loan agreement, the lender can seize your property and sell it.

You can take out three types of mortgages –

Borrowers can get a home loan only to buy a residential property or a commercial loan to buy a retail space. But, there are no end-use restrictions on loans against property. You can use the availed amount to fund medical emergencies, a vacation, education, a wedding, and more.

Key Features of a Mortgage Loan

Following are the salient features of a mortgage loan –

To Sum Up

Now that you know ‘what is a mortgage loan,’ decide a loan amount based on your financial health and repaying capacity. Gauge your fund requirements, eligibility criteria, and an available asset to take a suitable mortgage loan plan.

Are you looking for a mortgage loan? Use our home loan EMI calculator to estimate the EMI payments towards your stipulated loan amount.

Eula Boone

Total writer. Passionate tv practitioner. Pop culture expert. Student. Incurable twitter specialist. Skydiver, dreamer, guitarist, vintage furniture lover and critical graphic designer. Operating at the junction of modernism and mathematics to answer design problems with honest solutions. I'm a designer and this is my work.

    1