A mortgage is a “home loan” that is given by a third party to the home owner to buy a house. In return home owner will pay the loan back with current interest rate or variable interest rates as “closed mortgage” or “open mortgage” within certain period of time also known as “amortization period” as agreed in the terms and conditions of the contract.
Home loan application is an application that is given to the financer or “Lender” to borrow money to buy a property. The best way to choose the home loan is to find a mortgage agent. A mortgage agent works for the borrower in true interest of the borrower and negotiates with 100’s of lenders on terms and conditions that suites your need and where borrower can repay back easily. “Mortgage Agent” does not charge any fee to the borrower in most cases. They are paid a small commission by the lenders.
There are many types of loans that people borrow and one of them is Home Improvement Loan. These loans are borrowed by the home owners for upgrading the home. This could be with any motive and some of these motives could be:
- To get the better resale value from property
- To face lift the image of a home
- To put new additions or expansion
- To upgrade a structural requirement
- To buy an interior decorations for the home
- Or to uplift the image of the home owner in its neighborhood
Home Loan is a mortgage to buy a home where one party comes forward to lend a hand of financial assistance known as lenders to the other party known as home owners or buyers. The lending party could be:
- Financial institutions
- Home loan Lenders,
- Insurance Companies
- Mortgage Companies or
- Private lenders
The money is borrowed in a mutual understanding that is documented as a contract between the lender and a borrower and the borrower has to pay it back with a set interest rate fixed or variable plus the portion of principal amount as agreed in the contract. To repay back to the lender in monthly installments called “Mortgage Payments” within the certain period of time known as Amortization period or Amortization Schedule.
Amortization period or Amortization Schedule is a time line within which the amount has to be paid back to the lender in full and is set in the beginning of the contract. This is subjected to government guidelines and norms.
Remember one thing never ever go to the bank for a home loan or a mortgage. Always get a mortgage agent because banks are there to make money from you and they will sell you the interest and conditions best suited for them. Banks do not have access to other banks and lenders so they will only sell you what’s in their plate. But Mortgage agent has an access to many other lenders and he will get you the best Interest rates from the markets they will shop around from all lenders. Mortgage agents work for you and in your best interest.
Getting a mortgage can be a tricky business you have to shop around intelligently and if you are not aware of this industry hire a mortgage agent for free but make sure do not go to bank asking for a mortgage. Banks will sell you the most high money making product for the bank, you will be
paying lot of money to the bank making them rich. You will be locked for 5 years and if you try to come out heavy penalties and charges will be the result.
There are many question at the initial stage when a person wants to buy a home and these question are very important to be answered some of these questions are
- Will I get approved for a mortgage?
- Can I get a mortgage?
- Can you get a mortgage with bad credit?
- Where to file a mortgage application?
- Fixed mortgage disadvantages
- What is mortgage insurance and do I need one”
- Fixed mortgage advantages
- How much is mortgage fees?