What is Mortgage Loan?

A mortgage is a particular kind of loan that is used to buy real estate, usually a house or other piece of land. Under a mortgage deal, a lender (the mortgagee) provides funding to the borrower (commonly referred to as the mortgagor) so they can purchase the property. After that, the borrower commits to repaying the loan balance plus interest over a predetermined time frame, typically between 15 and 30 years.

In Other hand:

A mortgage loan is secured by nature. This means that you pledge property and obtain a loan against it. The lender holds this property as security until you return the debt in full. Repayment is made in the form of equal monthly installments.

Important elements of a mortgage consist of:

1. Principal: The first loan sum that the buyer borrowed in order to buy the property.
2. Interest, which is typically stated as an annual percentage rate (APR), is the fee that the lender charges for borrowing the principal amount.
3. Term: The period of time the borrower consents to pay back the loan. Mortgage periods of 15, 20, or 30 years are typical.
4. Repayment plan: The plan that details the monthly installments needed to pay off the loan throughout the course of its duration.
5. Collateral: The loan is secured by the property that is being bought. The lender has the power to foreclose on the property and sell it to recoup the unpaid amount if the borrower defaults on the mortgage as scheduled.

How to calculate Mortgage loan.

Mortgage interest rates can be either fixed, which means they stay the same for the duration of the loan, or adjustable, meaning they change from time to time in response to changes in the market.

Mortgages are a popular way for single people and families to stretch out the expense of a property over time and become homeowners. They do, however, carry a financial risk because defaulting on a mortgage could lead to foreclosure and the loss of the home.

How to apply Mortgage Loan:

Apply for Mortgage Loan | Union Bank of India

Mortgage Loan: Loan Against Property Up to 75% of Property’s Value (icicibank.com)

Apply for Mortgage Loan: Loan Against Property up to Rs. 10 cr | Bank of Baroda