We regularly hear word mortgage loans in today’s life but what actually it is? Mortgage Loan is a loan which we are getting against any real property as a security. The word mortgage is a French law term meaning “death contract”, meaning that the pledge ends (dies) when either the obligation is fulfilled or the property is taken through foreclosure.
Today if anybody want to buy home or even a builder who want to construct building can obtain Loan to purchase against the property security from any financial organization i.e. Bank and it can be obtained directly or through any intermediaries. There are various features of Mortgage Loan and the features are Size of Loan, Term of Maturity, Interest Rate, Method of repayment of loan and other also which may be varied as per rules and regulations of Bank.
Today all people do not have funds or savings on base of which they can purchase the properly on their own and in this situation Mortgage Loan is the best option to make the dream true of their own house or property. The term mortgage loan is very popular in all over the world, the terminology may be difference is different countries of the world but some components are similar in the loan in entire world and they are property to be mortgage, Interest, Lender may be bank or any financial institution, Borrower, Principal Amount, Repayment Process.
Mortgage Loans are usually structured as long-term, the payment mode should be on annual base and calculated on according to the time value of the money. The Payment is structured in long time of 10 to 30 years. Lenders lend the money to the people as they want to earn the Interest Income and it is one type of fix income till the loan is fully repaid by the person who has borrow the loan. But at the same time the financial institution or the lender of the money take care of riskiness of the amount they have lent if in case the person did not repay the loan then they can take action by for-closing the capital of the person who has taken the loan. So it is good source of income for financial organization as well as money-lender but at the same time good option for the person who don’t have any big amount of saving but want to have their own house and property then with the help of Mortgage facility can get the money and can be owner of the property. So this is facility to make the dream true for and normal person but need to take care of many things from taking of loan to repayment of the loan..