Mortgage Loans

What are the Methods for Quickly Repaying a Mortgage Loan?

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Paying off a loan quickly can help individuals save money on interest payments and give them a sense of satisfaction when they realize that they have paid the entire amount.

If you aim for a rapid payoff of mortgage property loan, here are some methods:

  1. Opt for a shorter-term period loan:

A shorter repayment duration results in greater monthly payments but lower interest over the loan’s lifetime. As a result, the borrower will be able to repay the loan fast.

With Fullerton India, getting a mortgage loan is quick and seamless, with competitive pricing, minimal documentation, flexible repayment tenures, and easy to meet loan against property eligibility. 

  1. Whenever possible, make additional payments:

Making extra payments to the lender is necessary to pay off the loan before the specified date. Other than the monthly EMI, these are payments borrowers make to the lender. 

However, check with the lender to see whether there is a cost for making an early repayment and adjust payments accordingly.

  1. Do not miss EMIs:

Another essential thing is that borrowers should not miss EMI payments to ensure the mortgage loan is paid quickly.

Further, lenders often charge a penalty if the borrowers miss an EMI payment, which raises the overall cost of the loan. 

Before taking a mortgage loan, borrowers can also compute EMIs on the EMI calculator to know what EMIs they might have to pay in the future. This will help them in checking the loan’s affordability. 

  1. Make a higher down payment:

Moreover, if possible, make a higher down payment and opt for a loan with high monthly payments to ensure that the loan is paid off quickly.

Additional Read: 5 Mistakes to Avoid When Taking A Loan Against Property

Home Loans and Mortgages – Here’s What You Should Know

It is becoming increasingly difficult for one to finance a home without exhausting their life savings. However, home loans are an excellent option to make one’s dream of having a home come true. 

Mortgage Loan

Mortgage loans are available for buying a home against a property that the borrower already owns. These loans are also called Loans against Property or LAP loans. The lenders do not cap the end usage of the loan amount available, as you can use the loan against mortgage property for any purpose. Calculating your EMI in advance using a mortgage loan EMI calculator will help you plan your repayments easily.

Home Loans

Home loans are finances provided to construct or buy a residential property. Financial institutions can sanction 75% of the price of the property. The remaining money needs to be paid by the borrower. Hence it is essential to know how much loan you are eligible for before choosing a lender. You can quickly determine this value approximation with the help of a free online tool called the home loan eligibility calculator. The loan amount sanctioned can only be used to finance a home, not for additional purposes.

Conclusion

It is important to choose a loan based on your requirements. It is better to go for home loans only if you are planning to take a loan for construction and purchase. Mortgage loans are beneficial if you wish to take a top-up loan over your existing loan. Additionally, home loan tenure extends up to 30 years, while mortgage loans have a lower tenure up to 15 years. It also helps you save a lump sum amount in tax deduction every year.

Additional Read: 5 Tips to Getting the Best Deal on a Mortgage Loan

Are You Eligible for Home Mortgage Loans?

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A mortgage loan is a type of secured business or personal loan in which you use your real estate assets as collateral. If you want to get a mortgage loan, you need to first check if you are eligible for it. 

Let’s discuss the eligibility criteria for home mortgage loans. 

For Salaried Individuals

Age: 18-70 years

Monthly Income: INR 25000 per month (net monthly income of the salaried co-applicants)

Loan Tenure: Up to 20 years

Interest Rate: Up to 12%

Employment History: Minimum proven work experience of three years

Type of Property: Industrial, residential, or commercial

Loan-to-Value (LTV): Up to 80% of the property value

CIBIL Score: Over 650

For Self-Employed Individuals

Age: 18-70 years

Income: INR 3 lakh per annum or above

Loan Tenure: Up to 20 years

Interest Rate: Up to 12%

Employment History: Business existence of at least five years and ITR of at least three years

Type of Property: Industrial, residential, or commercial

LTV: Up to 80%

CIBIL Score: Over 650

Documents Required for Home Mortgage Loans

Salaried Individuals:

  • Latest salary slips
  • Bank account statements of the last three months
  • Aadhar card/PAN card
  • Address proof
  • Copy of property documents
  • IT returns

Self-Employed Individuals:

  • Bank account statements of the last six months
  • Aadhaar/PAN card
  • Address proof
  • Copy of property documents

Conclusion

You can use the above information to check your loan against property eligibility. Also, please note that different lenders may have different eligibility criteria for home mortgage loans. Hence, be sure to check the requirements with your lender. 

Additional Read: How Many Types of Mortgage Loans Available in India?

How to Select the Perfect Property Mortgage Loan?

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Choosing the right property loan

Choosing the right property loan is one of the first steps in the home buying process. You must select a home loan that offers competitive mortgage loan rates, low operational costs, and flexibility to prepay. 

Let’s look at three factors to consider for choosing the best mortgage loan. 

  • Fixed vs. Floating Mortgage Loan Rates

Mortgage loan rates are of two types: fixed (that stay the same throughout the loan tenure) and floating (that changes throughout the tenure as per market conditions). Even though floating rates may seem tempting, fixed interest rates have proven to be more advantageous. 

  • External Benchmarks

The benchmark rate is the lowest interest rate at which a lender can provide a loan to a consumer. The benchmark rate aligns with the repo rate set by the RBI. It’s wise to choose a lender that has linked its loan rates to the repo rate. This way, you can stay assured you’ll receive the best mortgage loan rates. 

  • Loan Tenure

Selecting a suitable loan tenure is as crucial as choosing an ideal lender. Longer loan tenure is a better pick because you can get a higher loan amount and a low interest. Moreover, your cash inflow will increase as years pass by, enabling you to prepay your loan and reduce the interest outgo.

Wrap Up

Choosing the right property mortgage loan is an essential aspect of buying a home. When searching for lenders, look beyond the interest rate and evaluate other operational costs and quality of service to make the best selection. 

Additional Read: Fixed vs Adjustable Mortgage Loan Rates: How to choose the right for your need?

Apply for Mortgage Loans in a Few Simple Steps

A mortgage loan is a type of loan you can get by keeping an immovable property or asset as a mortgage to the lender. This asset could be any property or an object having a reasonable market value. Such loans have a long-term repayment tenure of around 15 years and have a lower rate of interest. So, whether it be an education abroad or growing business needs, you can easily avail yourself of such a loan through Fullerton India in easy steps.

Benefits of Mortgage Loan

At Fullerton India, we can enjoy the benefits of:

  • Loan up to INR 12.5 Crores: We provide loans against property up to INR 12.5 crores, ensuring that no dream, wish, or desire of yours goes unfulfilled.
  • Repayment-friendly Rates of Interest: Our loan against property interest rates range from 9% to 24%. We tailor our offers to your eligibility to guarantee you get the best possible option.
  • No-hassle documentation: Say goodbye to long lineups, tiresome paperwork, and time-consuming formalities. You can now apply for a loan against property online from the comfort of your home.
  • Flexible Payback Terms: We provide flexible repayment terms ranging from 1 to 15 years, allowing you to repay your loan at your convenience.

Apply in simple steps

  • Visit the loan application page on our website and then select the loan against the property.
  • Fill in the online application form.
  • We will get in touch with you for further details.

Besides, you can also use our free online mortgage loan calculator to get an idea of the overall cost of borrowing the amount.

Must Read: 5 Important Things to Consider while Taking Loan Against Demat Shares

Complete Guide To Using The Mortgage Loan EMI Calculator 

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One of the most common reasons for saving on finance all throughout the years is to acquire a home or house. However, the whole process of  obtaining a loan against a mortgage can prove to be a very time-consuming task and often requires evaluating alternative options and factors. 

But today, with the help of the mortgage loan EMI calculator, the whole process of selecting the best possible loan for your house is a quick and straightforward task. Here is your detailed guide to calculating the EMI for choosing the best viable option of loans for your home. (Calculate your Mortgage Loan EMI)

Steps To Calculate Your Through Mortgage Loan EMI Calculator 

The steps listed below will help you calculate your EMI account against the loan taken.

Step 1: Determination of Loan Amount 

In the first step, you need to determine the amount of loan you wish to take as a loan to meet your requirements.  The maximum limit for such loans is fixed at Rs. 10 crores. 

Step 2: Choosing the Period

In the second step, the period for which the loan will be taken must be determined. It must be done according to the time you will gather funds to repay the principal amount with interest. 

Step 3: Rate of Interest

In this step, you will need to determine the interest rate charged permanently on the loan amount. The interest rate on such loans is not fixed and varies from time to time. 

Step 4: Calculation of EMI

In the last step, the EMI is calculated against the entered mortgage loan amount, period, and interest rate. 

Must Read: What are the 4 Basics of Qualifying for a Mortgage Loan?

Top Tips to Prepare for A Mortgage Loan

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Mortgage loan is also like any other loan which we take against any kind of security. That is, if we take a loan by mortgaging the house or property, then it is called mortgage loan.

Tips to Prepare for A Mortgage Loan

  • Check Your Credit Scores

The first thing one needs to monitor when preparing for a mortgage loan is the CIBIL score. A high credit history with scores greater than 750 will prove your credibility. Get your scores in advance, check for their accuracy, and make your credit payments as regular as possible.

  • Do Thorough Research

Research the loan interest, the amount sanctioned by lenders etc., before you apply for loans. Applying for loans with multiple lenders will affect your CIBIL score. Hence do good homework and zero down on the best lender who offers you better rates and terms. 

  • Be Realistic

Use the lender’s mortgage loan EMI calculator to calculate the monthly instalments that suit your budget and the interest you will be paying for it to get a better idea and plan your finances accordingly. Choose a realistic instalment and evaluate your finances so that it doesn’t affect your credit scores for the future.

  • Look For Flexible Repayment Options

A mortgage loan is a long-term loan as it involves a higher sum. There are times you want to end your 15-year mortgage loan when your finances improve. Hence look for lenders who allow prepayment without any extra charges. 

  • Choose A Trustworthy Lender

The hard inquiry that lenders make will reflect on your credit report; hence, applying for several mortgage loans together will eventually affect your CIBIL score and the loan sanctions everywhere. Hence zero down on one lender using their digital platforms and go for it.

Fullerton India offers mortgage loans up to 12.5 crores based on the asset value pledged. We offer affordable lap interest rates from 9% and a flexible tenure of up to 15 years. Apply now!

Additional Read: Guide to Unlock the Best Mortgage Loan for You

What is a Mortgage Loan, And How To Get One For Yourself?

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A mortgage property loan is a secured loan that allows you to access funds to meet your financial requirements without putting any burden on your savings or investments. To get a loan, you need to pledge your property as collateral. It means that if you default on your repayments, your lender has the legal rights to sell your property to recover the loan amount.  

The loan amount that you can get depends on the value of your property. You may get up to 70% of your property’s value on a loan. The interest rate on a mortgage property loan is lower than other secured loans, and the loan tenure can go up to 15 to 20 years. Before applying for a mortgage loan, it is imperative to assess your loan affordability through a mortgage loan calculator available online.  

To apply for a mortgage loan, you will have to check with your lender about their eligibility criteria and ensure to meet them. Here are the requirements that you need to meet:  

  • You must be at least 21 years old at the time of loan application and 65 years during the loan maturity.  
  • You must be either a salaried employee of a company or a self-employed person. 
  • You must not have any current financial obligations. 
  • You must show a stable income based on your lender’s policy. 
  • You must be working in your current company for at least one year and have work experience of at least three years.  

 Besides meeting the eligibility criteria of your lender, prepare and submit the following document proofs: 

  • Identification proof 
  • Address proof
  • Salary slips 
  • ITR or form 16 
  • Bank statement

Check out the eligibility requirements of your lender to apply for a mortgage loan right away.

Must Read: 6 Steps of the Mortgage Loan Process: From Pre-Approval to Closing

How Much Mortgage Loan Can I Get?

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It happens that sometimes there is a sudden need for money, we get the idea of taking a loan. But which type of loan is suitable at that time is a big issue. If you live in your house and you need money for some work, then you can take a loan by mortgaging that house with financial institutions. This type of loan is known as a mortgage loan.

Factors affecting mortgage loan eligibility:

  1. Applicant’s Age- One of the critical factors for a mortgage loan is age, which the lender considers before deciding your mortgage loan amount. As the mortgage loan is taken for longer periods, so it is necessary to get into the position early to pounce on the opportunity
  2. Income- Income is also an important factor. While there is no specific income criteria, a reasonably good source of income will get you a mortgage loan.
  3. Down Payment- Normally every lender offers a mortgage loan which is 70-80% of the property value. So, make sure you have got your down payment covered.
  4. Property Location- The location of your property also determines your mortgage loan amount. A property in the positive list of lenders to get hassle-free loan approval. 

How much loan can I get?

While various factors influence the mortgage loan, however, the final loan amount will be the financial institution’s decision solely. For all the details you can call or visit the nearby financial institution’s branch and get all your queries and complaints resolved at the earliest. 

Additional Read: 4 Things to Know Before You Get a Mortgage Loan

5 Ways In Which Mortgage Loan Benefits Veterans

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Veterans are individuals who deserve respect and all the applause for their service to the nation. If you are a veteran who is looking for a loan, then there is good news you can now avail mortgage loan which comes with unique benefits making it easy for you to get keys for your dream house. Let us learn about the benefits exclusive that veterans enjoy with Mortgage loan.

Benefits of Mortgage loan for benefits

  1. No Down Payment

One of the things individuals struggle with before buying a house is saving for a down payment. While the option for zero down payment was earlier available for all, however now things have changed, but not for veterans. With no necessity for a down payment, you do not have to take money out from your savings or retirement emergency fund. You can also use your savings for repairs and renovation later. 

  1. No Private Mortgage Insurance

For lenders who cannot give 20 percent of the quote home price, have to get private mortgage insurance added to the total loan amount, for the risk of the loan being defaulted. However, with the veteran mortgage loan, as the federal government backs the loan, the risk is eliminated. 

  1. Basic Allowance for housing

The veterans are offered a basic allowance for housing, which can be counted as a source of income. This allowance can also be used for making the mortgage payment. 

  1. Better Interest rate

Apart from the above-mentioned benefits, veterans also enjoy favorable mortgage loan interest rates. Due to the government backing on these loans, the risk of failure is low, which is why lenders charge lesser interest rate of Mortgage Loan for veterans.  

With so many benefits, for veterans building a dream house is easy and simple. If you too are a veteran then you can now visit your nearest lender, or apply online for a Mortgage Loan and get all the above benefits. 

Must Read: 5 Types of Mortgage for Homebuyers: Which One is Best for You?

How does Mortgage Loan Balance Transfer work?

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Regardless of the loan you take, balance transfer is one of the more rewarding approaches that can minimize your interest-centric liabilities. However, for balance transfer to work perfectly, you need to understand the process in its entirety and make adjustments to your existing loan structure, accordingly.

Why balance transfer is important?

The concept of balance transfer allows you to shift the existing loan to another lender that offers lower interest rates. Therefore, with balance transfer to rely on, you can easily lower your accruing interests by a significant margin. Moreover, balance transfer allows you to correct your indecision regarding a mortgage loan where you might have persisted with a lender, quoting higher interest rates.

Balance transfer allows you to shift the outstanding amount of the existing loan to a lender that allows you to enjoy the perks of a lower mortgage loan interest rate. This process ensures that your loan liability goes down significantly, which can then be converted into affordable easy monthly installments.

When to opt for Balance transfer?

Firstly, you should never opt for balance transfer if your loan tenure is about to end as the minor perks of saving some money are outweighed by the penalties and fines procured by the existing lender. In case you have started off with the loan repayment process and stumbled across a lender that offers lower rates, balance transfer during the initial phase is extremely lucrative and beneficial. 

Then again, you need to consider the additional charges, resubmission of documents, and balance transfer fees into account before making the final call.

Must Read: How to Secure a Mortgage Loan in 6 Easy Steps


FAQs:

How much of a mortgage loan can I qualify for?

What are the factors when getting a mortgage loan?

Is a loan against property the same as a mortgage loan?

How to Get the Best Deals on your Mortgage Loans?

Mortgage Loan (LAP)

Mortgage loans are the ones that allow you to get a sizable credit line for collateral. However, every loan isn’t the same as you need to keep an open mind for getting the best deals in the existing lending space.

In the subsequent sections, we shall take a look at the best possible strategies for helping you save money on a mortgage loan. Here is a list:

Check These to Get the Best Deals on your Mortgage Loans:

  • Compare Deals and Offers

Comparing different mortgage loans is the best possible way to get a good deal. You need to compare different lenders and must go with the one offering the best rates, lowest processing fees, and minimal overheads.

  • Best Interest Rates

It is important to choose well and eventually go with the best mortgage interest rates, to save some money on the payments. A competitive interest rate ensures that you need not pay a hefty cumulative sum by the end of the tenure.

  • Seamless Restructuring

A good lender is the one that offers flexible repayment options, especially when loan restructuring is concerned. For instance, if you are planning to get a car loan, you can choose the tenure as per your existing financial standing. Every lender offers a mortgage loan EMI calculator to make repayment structuring easier for the borrowers. 

In addition to these, it is necessary to maintain a healthy CIBIL score to qualify for better and low-interest loans. Therefore, if you want to save money on mortgage payments, it is crucial to fix your credit history, beforehand.

Must Read: 6 Steps of the Mortgage Loan Process Explained

Mortgage Loans – A Brief Guide or All you Need to know About Mortgage Loans

A mortgage loan is a type of financial instrument where a borrower can avail finances from a lender based on the pledging of an immovable asset. The asset would be under the lender’s custody once the borrower repays the entire principal and the interest amount. 

Benefits of a mortgage loan:

Secured loan: A mortgage loan or a loan against property is known as a secured loan. In the case of defaults, the borrower can take control of the asset to recover the finances. Alternatively, as a borrower, you can also sell off a part of your asset to settle the loans. 

Rate of interest & tenure: Compared to unsecured loans, such loans have comparatively lesser mortgage loan interest rates and longer tenures. As the asset is with the financial institution, flexibility is provided in the interest rate and tenure.

Processing & documentation: Mortgage loan processing is relatively quicker as the lender would assess your plot to approve the finances accordingly. The necessary documentation would comprise of KYC, land/plot documents, income proof, and other relevant documents.

Types of Mortgages:

Mortgage loan types are as follows:

  • Simple mortgage (where the prime control is with the lender)
  • Usufructuary mortgage (where the borrower transfers the possession to the lender)
  • English mortgage (In case of successful payback, the borrower can regain the possession of asset)
  • Mortgage by conditional sale
  • Mortgage by title deed

Conclusion

Pledging your property is a huge decision, and you should entrust your asset with a lender who has a good reputation and is trustworthy in the market. 

Must Read: 4 Ways to Get Better Interest Rates on Personal Loan