All You Need To Know Before Opting For Mortgage Loan in Hooghly
The Mortgage Loan in Hooghly is the loan that is provided by a mortgage lender or bank which enables people to buy a property or home. While it is likely to take out loans to cover the whole cost of the home, it’s more normal to make safe the loan for about 80% of the home’s value. The loan must be repaid in due course. The home bought acts as security on the money that people are lending to buy the home.
Let us discuss more mortgage loan before you take a Mortgage Loan in Hooghly.
Type of mortgages-
- Fixed rate - The fixed-rate mortgage provides borrowers an established interest rate over the set term of typically 15, 20, or 30 years with fixed interest rate, the shorter the term over which an individual pays higher payment. Conversely the longer an individual takes to pay, the smaller is the monthly payment. The longer it takes to pay back the amount, the more the individual ultimately pays in interest charges.
- Adjustable-rate - It comes with the interest rate that can and does change over the loan lifetime. An increase in the market rate and other aspects causes the interest rate to fluctuate which alters the amount of interest the borrower must pay and therefore changes the monthly payment. With this, the interest rate is set to be reviewed and adjusted at particular times. For instance, the rate may be adjusted once a year or every six months.
Mortgage payments-
Mortgage payment usually occurs on monthly basis and comprises of four main parts-
- Principal- It’s the total amount of loan given. For instance, if a person takes out a 12,50,000 mortgage for buying a home, and then the principal loan amount will be 12,50,000.
- Interest- It is the monthly percentage added to every mortgage payment. Lenders and banks do not simply loan people without expecting to get something back. Interest is the amount that a lender or a bank charges on the loan amount.
- Taxes- In many cases, the mortgage payment will include the property tax the people must pay as a homeowner. The municipal taxes are evaluated based upon the home value.
- Insurance- Mortgages also includes homeowner’s insurance that is needed by lenders to cover damage to the home and the property into it. Also, it covers specific mortgage insurance that is usually required if a person makes a down payment that is less than 20% of the home’s value. That insurance is designed for protecting the lender if the borrower defaults on the loan.
The end
So, that’s all about a Mortgage Loan. Get the Mortgage Loan in Hooghly from the right lenders.