A mortgage is a loan taken on a house or property which is to be paid in a specified time period. They come in different sizes and shapes, each of which has its own merits and demerits.
The most common type of mortgages is of course home mortgage.
When you are done with the search of the property you require, you must approach a lender. The most important thing is to look for a mortgage with low interest rate. Interest rate comes out to be the most watched out thing when you opt for a mortgage loan.
Interest rates vary from lender to lender with each of them having their own terms and conditions. There may even be a difference of 1% on the loan depending on the lender. There comes a mortgage term with every loan given by a lender. Exit penalties may come into play when the borrower gives up on the mortgage before the agreed upon time period.
Note that you cannot take up another loan if one of them is on-going and if so happens you may have to end up paying a given per cent of extra amount to the lender. So you need to be flexible and prevent any mortgages which may let you down.
A good investor hopes that the property he buys on a mortgage rises in its value over the time period provided. And if this happens which generally does, this turns to make the investment look good and perhaps makes a good deal. This will make the mortgage you initially paid look smaller when compared to the original price of the property you have at the end. The term of loan is generally 25 years. You can easily get a mortgage of your own time period these days. For all those employed in a company it may be difficult to get a mortgage of time period which goes beyond the time of your retirement.
However this may also depend on the approach of the borrower and if by any chance the employee convinces the lender to pay the mortgage by his pension amount the mortgage turns out to be well and good.
The most common type of mortgages is of course home mortgage.
When you are done with the search of the property you require, you must approach a lender. The most important thing is to look for a mortgage with low interest rate. Interest rate comes out to be the most watched out thing when you opt for a mortgage loan.
Interest rates vary from lender to lender with each of them having their own terms and conditions. There may even be a difference of 1% on the loan depending on the lender. There comes a mortgage term with every loan given by a lender. Exit penalties may come into play when the borrower gives up on the mortgage before the agreed upon time period.
Note that you cannot take up another loan if one of them is on-going and if so happens you may have to end up paying a given per cent of extra amount to the lender. So you need to be flexible and prevent any mortgages which may let you down.
A good investor hopes that the property he buys on a mortgage rises in its value over the time period provided. And if this happens which generally does, this turns to make the investment look good and perhaps makes a good deal. This will make the mortgage you initially paid look smaller when compared to the original price of the property you have at the end. The term of loan is generally 25 years. You can easily get a mortgage of your own time period these days. For all those employed in a company it may be difficult to get a mortgage of time period which goes beyond the time of your retirement.
However this may also depend on the approach of the borrower and if by any chance the employee convinces the lender to pay the mortgage by his pension amount the mortgage turns out to be well and good.
