Buying a home is impossible for lot of people without the mortgage loan. Fortunately, there are hundreds of lenders who are offering mortgage loan in gujarat. So whether you are buying your first home or planning to move into a new house. You can get the home loan suitable for you.
But there are different type of lenders so there are different ways in which mortgages are offered. The first one is in which you take the loan and make the repayment by paying on a monthly basis and the interest every month. At the end of the term, which is usually between 25 and 30 years, your mortgage debt will have been totally repaid.
The other way is interest-only mortgage in which your monthly payments will only cover the interest. Which is why you need to have plan so that you can afford to repay the amount you initially borrowed in full, at the end of the term.
Now you might have got interested to some amount. So let us tell you. There are some advantages and disadvantages to it as well. Which we have discussed below.
Advantages of a mortgage
- Getting Dream House Becomes Easy
Having an own house is like a dream for everyone. Getting mortgage from the mortgage lenders makes it easier to fulfil the dream. As you can easily spread the payment into monthly instalments. Which is convenient and affordable.
Normally a person takes the mortgage loan for approx. 25 years or 30 years. The more the years to make the repayment can bring your monthly payments down, but on the flip side you’ll be saddled with the debt for longer.
So whenever you are planning to get a mortgage loan. Make sure to choose the shortest term which you can afford – not only will you be mortgage-free sooner but you’ll also save yourself thousands of pounds in interest.
2. Cost-Effective Way of Borrowing
This is one of the best feature of a mortgage loan. The interest rate are always tend to be lower than any other form of loans. It is because the loan is secured against your property.
Which means if you are unable to pay back the loan then the bank or the institution that has offered you the loan can take your property to sell to get back some, if not all, of the mortgage.
If you are lucky enough then you can even get some discount on the mortgage loan which is offered by the government or product aimed discount for the first time buyers and landlords.
Disadvantages of a mortgage
- Pay More Than Original
If you look it in a broad way. Then it is not a disadvantage as it is very obvious that you will have to carry an enormous debt for over a long time.
Even though the monthly repayment makes it look reasonable but it you look it over some years. Then you will see you are paying a hell lot of money.
Just to give you an example, imagine if someone borrowed a $50,000 over a 25-year term would repay $90,000 in total once the interest is added on.
2. You Can Lose Your Property
Whenever you take a mortgage loan then you need your property as a security and if you are not able to make the repayments on time or miss some of them then you can lose your property. We hope that by you might have got some idea as too how good or bad the mortgage loan could be for you. Now you will have to decide on your personal level as to what you want to do. But if you are looking to get mortgage loan for yourself or for a friend. Then you can checkout ZatPat Loans. As currently they are one of the best loan providers offering loans at amazing interest rates.