Home Loans Hub Twitter Button from twitbuttons.com
  Home Improvement Loans   Home Equity Loans   Mortgage Calculator   Get Home Loans
 Home  » Bank Loans  » Home Loan  »  Mortgage Loans

Mortgage Loans

Mortgage loans are known all over the world in different names. These loans are ideal financing tools for buying a home. There are various types of mortgage loans meant for various purposes.

Mortgage loans: An overview

Mortgage loans are also known as home loans or home mortgage loans. Whatever be the name, these loans mainly serve one purpose and that is buying a home. These are secured loans where the home you want to buy is used as security or pledge against the loan you are borrowing. There are various sources from which you can borrow a mortgage loan. You should always keep in mind that the lender has every right to take away your home in case you fail to repay your loan in time.

Mortgage loans have similarities with other types of loans because they also come with an interest rate and these loans are amortized over a particular time period, normally 30 years. Every real property can be backed by a mortgage. The interest rate charged for a mortgage loan is the reflector of the degree of risk borne by the lender.

Mortgage lending is one of the principal forms of business in many nations and it is used to finance ownership of residential and commercial real estate.

Mortgage loans are typically designed as long-term loans since buying a home needs a lot of money and it takes time to pay off the money as well. You can pay off a mortgage loan in different means such as principal and interest payments and interest only payments.

Features of a mortgage loan

Given below are the significant features of a mortgage loan:

Interest rate: The interest rate on a mortgage can be fixed or adjustable. It is the cost of borrowing the money offered by the lender.

Monthly payment and amount of payment: Monthly payment is the payment that you need to make every month on your loan. The amount of payment is decided by a number of factors such as the interest rate, amount of loan, the repayment term and the starting date of the loan.

Repayment term: Repayment term is the number of years for which you are taking out the loan. Usually, the maximum term is 30 years for a fixed rate mortgage.

Frequency of payment: It refers to the number of times the loan payments need to be made in a year. You can go for either monthly or biweekly mortgage payments.

Types of mortgage loans

Mortgage loans can be broadly classified into two types: adjustable and fixed rate mortgages.

Adjustable rate mortgages

These loans come with an interest rate which changes from time to time and is tied to the Treasury bill index or the prime rate. As a result of this, your monthly payments are also subject to change.

Fixed rate mortgages

Fixed rate mortgages ask for an interest rate that stays unchanged for the entire duration of the loan. The benefit here is that your monthly mortgage payments remain unchanged as well. Fixed rate mortgages are traditional forms of mortgages in the United States.

Besides these two abovementioned loans, there are other types of mortgages which include the following:

  1. Jumbo mortgages
  2. Hard money loan
  3. Package loan
  4. Offset mortgage
  5. Reverse mortgage
  6. Participation mortgage
  7. Seasoned mortgage
  8. Interest-only loan or term loan
  9. Repayment mortgage
  10. Negative amortization loan
  11. Wraparound mortgage
  12. Assumed mortgage
  13. Non-conforming mortgage
  14. Balloon mortgage
  15. Bridge loan
  16. Blanket loan
  17. Commercial Loan
  18. Budget loan
  19. Buydown mortgage
  20. Equity loan
  21. Endowment mortgage
  22. Flexible mortgage
  23. Graduated payment mortgage loan
  24. Foreign National mortgage




Home Loan

Bridge loans

Home purchase loans

Home improvement loans

Home construction loans

Home extension loans

Home equity loans

Land purchase loans

Mortgage loans

Housing Finance Companies

Ind Bank Housing Ltd

HUDCO

Bank Loans

GE Money Home Loan

Dena Bank Housing Loan