Mortgage Meaning, Definition of Mortgage, Types of Mortgage and Mortgage Calculator :
Hello, how are you all? You know Mortgage is very important topics in our life. Here I will try to describe about Mortage defenition and different type of mortgage meaning also. Besides you will get information here about all types of mortgages, mortgage types definition, types of mortgage uk, types of mortgage pdf, mortgage calculator, mortgage meaning, types of mortgage loans pdf, types of mortgage explain, mortgage meaning in hindi, mortgage meaning in bengali, mortgage loan meaning, mortgage meaning in telugu, mortgage meaning in tamil, mortgage meaning in marathi, how to pronounce mortgage, types of mortgage etc.
Mortgage Meaning :
A mortgage is a debt instrument, secured by the collateral of specified real estate wealth or property, that the borrower is obliged to pay back with a predetermined set of payments.
Mortgage loan meaning :
A mortgage loan or simply mortgage is a loan used either by purchasers of real property to raise funds to buy real estate or any other property, or alternatively by existing property.
The different types of mortgages :
- Repayment mortgage
- Interest-only mortgage
- Fixed rate mortgage
- Standard variable rate (SVR) mortgage
- Discounted rate mortgage
- Capped rate mortgage
- Tracker mortgage
- Cashback mortgage
- Flexible mortgage
- Offset mortgage
Repayment mortgage :
Repayment mortgage Means Over the term of your mortgage, every month, you steadily pay back the money you have borrowed, along with interest on however much capital you have left. At the end of the mortgage term, you will have paid off the entire loan.
Interest-only mortgage :
Interest-only mortgage means Over the term of your loan, you don’t actually pay off any of the mortgage – just the interest on it. Your monthly payments will be lower, but won’t make a dent in the loan itself. At the end of your term, you have to pay the total amount in full.
Fixed rate mortgage :
Fixed rate mortgage means ‘Rate’ refers to your interest rate. With a fixed rate mortgage, your lender guarantees your interest rate will stay the same for a set amount of time (the ‘initial period’ of your loan), which is typically anything between 1–10 years.
Standard variable rate (SVR) mortgage :
Standard variable rate (SVR) mortgage means a lender’s default, bog-standard interest rate – no deals, bells or whistles attached. Each lender is free to set their own Standard variable rate, and adjust it how and when they like.
Discounted rate mortgage :
Discounted rate mortgage means Over a set period of time, you get a discount on the lender’s Standard variable rate. This is a type of variable rate, so the amount you pay each month can change if the lender changes their Standard variable rate.
Tracker mortgage :
Tracker mortgage means Tracker rates are a type of variable rate, which means you could pay a different amount to your lender each month. Tracker rates work by following a particular interest rate to determine what you pay each month (for example, the Bank of England base rate), then adding a fixed amount on top.
Capped rate mortgage :
Capped rate mortgage means These are variable mortgages, but with a cap on how high the interest rate can rise. Usually, the interest rate is higher than a tracker mortgage – so you might end up paying extra for that peace of mind.
Cashback mortgage :
Cashback mortgage means When you sign up to your mortgage, the lender pays you a lump sum of cash (usually, a percentage of your loan). This can be around £500–£1,000.
Flexible mortgage :
Flexible mortgage means These usually have terms that let you overpay and underpay (pay more or less than the monthly amount you agreed with your lender) and even take a payment holiday (miss a few monthly payments) if you need to.
Offset mortgage :
Offset mortgage means A way to use your savings to reduce the amount of interest you pay on your mortgage. You have to turn your mortgage into an offset mortgage, then open a current or savings account with your mortgage lender and link that account and your mortgage up.
Mortgage calculator means an amount which you need to pay monthly. As example if your home price is 80,000 USD then your monthly payment is 393 USD. If your home price is 1,55,988 USD then your monthly payment is 703 USD. In this way you can calculate your mortage calculator.
Use mortgage calculator to estimate monthly mortgage payment. You can input a different home price, down payment, loan term and interest rate to see how your monthly payment changes. You can get help to see live mortgage calculator. It will be helpful for you.
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