Types of Mortgage Loan for Homebuyers

Buying a home is a costly affair, more than just getting a loan. To choose the best lender, you must get all your basics right and be aware of all types of mortgage loans available for homebuyers.

Types of Mortgage Loan for homebuyers

1. Conventional Home Loans: These are the conventional forms of home loan, in which against your property, you can borrow a loan amount of up to 80% of the property price. The mortgage loan EMI calculator will help you with this loan.

2. Government-Backed home loan: To ensure that every individual has the best opportunity to buy a house, the government has backed various home loans.

3. Fixed-rate Mortgage: As the name suggests, fixed-rate mortgage loans are offered at a fixed interest rate. Throughout the loan tenure, the interest rate remains constant.

4. Adjustable mortgage loan: In Mortgage loans, the interest rate is tied to an index or benchmark rate. For a certain period, the borrower has to pay a lower rate, but the interest rate can increase or decrease based on the benchmark rate after that period.

5. Lease rental discounting: This mortgage loan allows individuals to get a home loan against rentals. If you earn a fixed monthly rental from a property, then you can opt for this loan.

Conclusion

A mortgage loan is one of the best home loan options available for borrowers not to exhaust their savings while buying a new home. A mortgage loan EMI calculator will help you choose the suitable loan term offered by the best lender.

Must Read: Here’s How you Can Avail a Loan against your Property? Step by Step Guide