Life is very unpredictable. You can not even think about what emergency you might get stuck in the very next moment. Sometimes, a person requires immediate funds but cannot figure out what he should do to fulfill the requirement. Here comes the concept of Mortgage Loans. A mortgage loan is a credit taken out against the property you have. The loan is given as some percentage of the market value of the property. Hence you can arrange your funds easily by just keeping away the property in safe hands.
Another thing where Mortgage Loans help is while buying a house. There are hundreds of moneylenders offering a whole range of different types of mortgages for purchasing a home. This is how a mortgage loan helps in various good or bad situations of life. But what are the benefits of acquiring mortgage loans for such things as there are many other options available? Let’s dive into those points and see how they are beneficial over others.
- Easy and Secure
No doubt you mortgage your property, but it is always secure as you continue to remain your property’s legal owner while you use the funds from the loan to fulfill your needs. This means you do not have to bequeath your ownership of the property and can get the loan. Hence you do not have to worry about losing your property. Apart from being secure, it is an easy process to get a mortgage loan. Mortgage loans are quickly approved since they are secured loans. Lenders are more than willing to provide these loans. Therefore, you won’t find it troublesome to get a property loan. Considering both these points, you will be in a much better position to weather economic storms with a mortgage than without, assuming you have put money aside.
- Flexible Interest Options
While getting a mortgage loan, you get multiple choices for selecting the type of interest. You can go for the fixed interest rate. This interest rate remains equivalent for the entire loan tenure. You may be allowed to opt for a fixed interest rate if you opt for shorter tenures. If you want to go for a longer tenure, a fixed interest rate won’t benefit you. For larger terms, you have another option available at your desk. You can go for a 25-year period. This term is not fixed or decided as such. People consider it as retirement age is going up. This shows how you can adjust your interest depending upon longer or shorter tenures. Another rate concept in a mortgage loan is the floating interest rate. This interest rate is adjusted according to prevailing market rates, and you can not predict what the rate will be in the future. This is a rate of interest that can change periodically, and it is directly linked to the MCLR.
- More economical interest
The interest rates on Mortgage Loans are much less than any other type of loan, as the loan is secured in return for your property. This is the reason why the interest you pay on a mortgage loan is much lower than that of a personal loan. Mortgage loan interest rates generally range between 12% and 15%, while in personal loans, the interest rate ranges are 15% to 25%. The interest paid on your home mortgage is deductible, up to certain limits, on your tax return. Being able to save your money this way makes paying off your mortgage easier overall. This is the primary reason for an individual to choose a secured loan over an unsecured loan. As mortgage loans have an option for the longer term, the EMI cost also reduces. The longer the tenure, the lower will be the EMI. One can repay the loan in affordable monthly payments. Hence it becomes relatively easy for people who can not afford higher EMI’s.
Apart from all these, there are many other benefits of acquiring a loan through a mortgage. A mortgage loan can be customized to befit your requirements. Hence mortgage loans should be a priority for many personal requirements like funding a medical emergency, paying for your children’s higher education, paying for your children’s wedding, business expansion, etc. There are many trusted online platforms from where you can get a mortgage loan easily and is even secure. So why not go for a Mortgage loan if it comes with so many advantages?