Mortgage loans: Boom for new buyers??

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Mortgage loans Boom for new buyers??

• How can it be used to your advantage

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• All of us aspire of owning a home, our very own
  space. We keep on planning for years to buy one.
  We save money, search affordable homes which can
  fit our pockets and budgets.
• This is not an easy task to find a suitable and
  good-to-buy house with all the necessary comforts
  and basic amenities under one roof.
• To make it possible you either have to go for
  home loans or mortgage loans. So if you are
  considering buying a home, a home mortgage might
  be the most viable option for you.
• It would be an important investment for you as it
  will affect you for a considerable portion of
  your life.

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A mortgage is a loan in which property is used as
collateral. This is generally used by those who
want to purchase real property. The loan is
secured on borrowers property. A legal mechanism
is put in place so that in case the borrower
defaults to pay off or violates the terms and
conditions agreed upon, the lender can take the
possession of the property and can sell it to
recover the money. In India, we have lenders
like banks, building societies or credit union.
Features like size and tenure of loan, interest
rate may vary but generally when you get a
mortgage it takes 20-30 years to pay off the
principal as well as the interest and after that
you can be the proud owner of Flats in Noida.
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In case of home mortgage, there are two kinds of
interest rates fixed and floating. Fixed rate
remains the same throughout the years but if it
is floating the interest rate may change
depending on a number of factors. There are a
lot of advantages when one takes out a mortgage
to buy a home. The first and most obvious is that
you will not be paying a lump sum of money to own
a home as you would not be required to pay the
full amount up front.
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This is much more convenient because generally
houses are a very large purchase. The added
advantages of mortgage loans are that they
improve your credit score and reduce tax
liability too so that you can easily invest in
any good project such as Project in Noida.
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In India we have different types of mortgages -
1. Simple Mortgage - 
In this, without delivering possession of the
mortgaged property, a mortgagor binds himself
personally to pay the mortgage money. If the
transferor or mortgagor fails to repay the loan,
the transferee or mortgagee has the right to sell
the property and recover the amount of loan from
the sale amount.
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2. Conditional Selling mortgage - 
In case of a mortgage by conditional sale, a
mortgagor sells the mortgaged property on the
condition that on default of payment of the
mortgage money by a certain date the sale will
become absolute or sure. On the payment being
made, the sale becomes void and on the payment
being made the buyer will have to transfer back
the property to the seller. Thus mortgagor
becomes the owner of the property.
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3. Usufructuary Mortgage - 
In Usufructuary mortgage the mortgagor actually
delivers the possession of the property to the
mortgagee. The mortgagee can rent out the
property and receive the rent. The mortgagee
receives the income from the property such
Usufructuary Mortgage in Usufructuary mortgage
the mortgagor actually delivers the possession of
the property to the mortgagee as through rent,
profit, interest, etc until the repayment of the
loan is done. On repayment of loan the
possession of the property is transferred back to
the mortgagor.
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4. English Mortgage -
In an English Mortgage, the mortgagor is bound to
repay the borrowed money on a certain date. The
mortgagor transfers the property to the
mortgagee. But such transfer is subject to the
condition that the mortgagee will transfer the
property back on repayment before the agreed
date.
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5. Mortgage by deposit of title of deeds - 
In such mortgage, the mortgagor delivers the
title document of the property to the mortgagee
with an intention to create a security thereon.
Such mortgage is valid in only certain towns like
Kolkata, Mumbai and any other town as the State
Government may notify by publication in Official
Gazette.
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6. Anomalous mortgage -
Anomalous mortgage is actually a combination of
different types of mortgages.
Thus to buy a home or to invest in a property
like Property in Noida, you can use the mortgage
loans to your advantage and can fulfill your
dream of owning Flats in Noida as the property
provides good opportunity for buyers especially
the new or first time buyer to own a very well
located house with all the luxuries.
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