Features and Benefits for Mortgage Loan

Check For Your Mortgage Loan Process

Essential Facts About Mortgage Loans ● High loan value : Based on the current market value of the mortgaged property, applicants can avail as much as up to 80% of the sum as a loan amount. The substantial loan value helps to meet financial requirements effectively. Also, its use can vary as per the loan type. ● Flexible tenor : Mortgage Loan comes with a tenor of up to 20 years or more and flexible repayment options. However, borrowers must analyse the impact of tenor on their EMI before selecting a particular tenor. For instance, a longer tenor accompanies a lower EMI amount and vice versa.

Essential Facts About Mortgage Loans ● Quick disbursal : Generally, financial institutions follow a simple documentation process. It facilitates verification and loan approval significantly, and accelerates the loan disbursal process. ● Interest rate : Unlike unsecured loans, the mortgage loan interest rates are comparatively low, making it easy to repay. ● Balance transfer and top-up facility : The balance transfer feature helps to lower the mortgage loan interest rates, while top-up loans help borrowers to avail additional funds to meet their diverse funding requirements.

Factors Influencing Mortgage Loan Rates ● CIBIL score - A strong credit score and credit report, i.e., devoid of default or delay in payment, tend to have a favorable effect on the loan’s interest rates. ● Borrower profile - Typically, a borrower profile can have a considerable impact on the mortgage loan interest rates extended by a lender. ● Type of interest - Usually, financial institutions levy two types of interest rate on borrowed loan value, namely – fixed interest rate, floating interest rate. ● Property location - Mortgage loan interest rates also depend on the location of the property mortgaged. In most cases, properties located in cities and prime locations fetch a lower rate of interest.

Conclusion Hence, factors like credit score and credit report, type of interest, borrower profile, tenor, and location help to determine the mortgage interest rates.

Also, to make the most of this loan, individuals should look for the potency of its features and associated benefits.

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