123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Common Home Mortgage Terminologies

Profile Picture
By Author: Inr Credit
Total Articles: 35
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Buying the very first house for your family is not difficult if you have cash at hand to make that purchase. However, if you are like the average Indian, you will have to get a loan to afford a house. There are various different terms that you must know in order to understand home loan which may help you in picking the right loan that you can afford.

Here are some common terminologies:

By planning to purchase a house, you are actually applying for a mortgage. A mortgage can be defined as a loan that you can avail in order to pay for a real estate. This may include a house, a commercial space or a residential land. The real estate that you are purchasing will be used as a collateral to your loan. This simply means that in case you are unable to make payments for your loan, the bank or your lending company has the right to take your property away in order to cover up for your missed payments.

There are some other terms which you need to understand:

Principal: it is a term used for the actual amount of loan that you have taken to purchase the property of your choice. Bank allows you to use this amount of money to purchase the house or property that you want.

Interest: it is the amount which the bank charges you for taking the loan and using their money to purchase your house. The bank earns the interest amount by investing money in your real estate project. It is often calculated as a percentage on the principal amount and the rates may vary largely from bank to bank.

These interest rates may be fixed or floating depending on the type of lending institution which is paying the loans. It also offers set rate of interest which does not change all through the loan term.

Term: The term is basically the time that you will be allowed to pay your bank the amount of money that you have borrowed. Since buying a real estate requires a large amount of money, these terms may vary from fifteen to 30 years.

Amortization: it is the term given to process of dividing the total of principal and interest in EMIs over the term of loan. The payments that you regularly pay towards the interest payment during the initial years of your term. The later payments of your term go to cover your principal amount. The process is same for any home loans you take, including DDA home loan in Dwarka and other parts of Delhi-NCR.

PITI: The regular payments that you make towards the fulfilment of your loan is not just the combination of interest and principal. PITI stands for principal, interest, taxes and insurance which are also included in EMIs of your home loan. Many lending institutions offering home loan in Dwarka will be happy to negotiate this amount.

Source:https://www.freeprnow.com/pr/common-home-mortgage-terminologies

Total Views: 112Word Count: 487See All articles From Author

Add Comment

Business Articles

1. The Three Key Steps To Termite Prevention
Author: Austin Baines

2. Beautify Home Interiors And Improve Your Living Standards With A Top Interior Designer
Author: Rohit Tiwari

3. We Set-up To Check Your Conditions In Our Packaging
Author: qcboxes

4. How Cardboard Packaging Delivered Revolution In Packaging Enterprise
Author: qcboxes

5. Why Qcb- Industry Leading Packaging Providers
Author: qcboxes

6. Professional Silk Laminated Business Cards And Affordable Custom Postcards Printing Service
Author: Vikram Kumar

7. Order Business Cards – The Most Professional Service Provider
Author: Vikram Kumar

8. How Can Having A Franchise In Schooling Be Helpful For Businesses?
Author: Rasika Nimkar

9. 5 Types Of Clamps Commonly Used In India
Author: Priya

10. That's How Gamification Benefits Your Business In The Long Run
Author: Surabhi Joshi

11. Blockbusterprint : Every Door Direct Mail Templates- A Great Alternate Way To Mainstream Advertiseme
Author: Vikram Kumar

12. Give Your Brand An Extra Oomph With Unique Business Cards
Author: Vikram Kumar

13. Australian Based Video Production Company Visionair Media Turns White Collar Workers Into Stars With
Author: 1888pressrelease

14. Blockbusterprint :print Cards With Good Quality And Quantity
Author: Vikram Kumar

15. Silk Business Cards - Make Your Image, Build Your Business
Author: Vikram Kumar

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: