Are You Planning to Apply for a Mortgage Loan in Mumbai?

Mortgage loan, also known as mortgage, can be obtained through an online broker, bank or an independent mortgage broker. Whether you are an individual mortgaging your home or a business mortgaging your commercial property, you need to pledge property owned for refinancing a loan or to buy residential or commercial real estate. 

If you are planning to apply for a mortgage loan inMumbai, make sure you have chosen a reliable lender. Since the property purchased will be used as collateral or security for obtaining the debt, it is important to know whether or not the lender is safe to deal with. In case you default on the mortgage payments, the property will be sold by the lender under foreclosure. 

Are you eligible to apply for mortgage loan?

Income and employment details are taken into consideration when accepting or rejecting a mortgage loan application. Income details help in assessing whether or not the applicant can handle monthly payments of the loan. There are mainly three important aspects that are considered by lenders when sanctioning a loan:

1.       Down payment

2.       Credit score

3.       Monthly income 

Types of Mortgage Loans

Fixed rate mortgage- this is one of the most popular mortgage products, carrying a fixed rate over the loan period. This type of mortgage is not influenced by increase or decrease in interest rates because the rates are locked and payment amount remains the same

Adjustable rate mortgage- this type has a fixed interest rate for a certain period. This type of mortgage fluctuates as per changes in market interest rate once the fixed rate period is complete

Whether you apply for a mortgage or home loan online, interest rate, payment amount, pre-payment and term are some of the common characteristics of mortgage.