Mortgage - Finance Your Needs

Mortgage loans are taken to either buy a new property or refinance. Mortgage loans are offered only after a perfect analysis of the income, locality, taxes and the culture.
By: Sarah Conner
 
May 8, 2010 - PRLog -- Mortgage loan is a loan where you keep your property as security in order to attain the mortgage amount with the support of your income proofs.

Either a builder or a buyer can apply for mortgage loans by keeping their property as security either directly through a bank or through agencies. However getting a mortgage loan may depend on lot of factors.

Mortgage Loan types

Interest – Interest to be paid on the mortgage principal amount may be fixed or variable and can change at certain period. The interest rate can be higher or lower.

Term – Mortgage loans are accompanied with a maximum period of term i.e. after a certain period of time an amortizing loan will be repaid.

The two basic types of amortized loans are

Fixed Rate mortgage

Adjustable Rate Mortgage

A number of other mortgage loans are also available which are

Assumed Mortgage
Balloon Mortgage
Blanket Loan
Bridge loan
Budget loan
Commercial loan
Buy down mortgage
Endowment mortgage
Flexible mortgage loan
Equity loan
Foreign National mortgage

Repaying the capital

Mortgage loan amount can be paid in various ways, but it further depends on the locality, tax laws and the ongoing culture of that place. The most common way to pay the mortgage amount is to pay the principal amount and pay the interest over a set period.

The major institutions offering mortgage loans are building societies, banks, insurance companies, pension funds and specialized mortgage companies. Interest rate also comprises of different sections. To name a few of them

Fixed Rate
Capped Rate
Discount Rate
Cash back mortgage

100% mortgages

Whenever a borrower asks for a mortgage loan the bank or the lender may ask the borrower to deposit a certain amount after purchasing the property as a deposit to the bank.

100% mortgages are mortgage loans that require no deposit (100% loan to value). 100% mortgages are offered to the people who apply for a mortgage loan for the first time and they are offered a higher rate of interest.

You can acquire the Mortgage loans at http://www.chumsfinance.co.uk/mortgage/

UK mortgage process

The lenders in UK often charge a valuation fee, which is been paid t a chartered surveyor who visits the property to be mortgaged and checks if the property is worth for the mortgage loan amount applied for.

Please vist the best option for http://www.chumsfinance.co.uk/
End
Source:Sarah Conner
Email:***@chumsit.com Email Verified
Zip:NN15 6TR
Tags:Mortgage, Mortgages, Fixed Mortgage, Mortgage Deals, Mortgage Online, Mortgage Offers, New Mortgage
Industry:Financial
Location:England
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