Home Mortgage Financing
Home Mortgage Financing, better defined as home mortgage loans, help in the procurement of a house, in which the said house in considered as a security against the loan amount. Home Mortgage Financing usually stretch over a substantial period of time.
Last Updated on 5/26/2011
Key Constituents of Home Mortgage Financing:
Home Mortgage Financing revolves around certain constituents and the most significant constituent is the house that has initiated the need for home mortgage financing. The choice of the proper institution to avail the loan is the second important constituent. The next constituent are the terms and conditions set up for the mortgage procedure. Terms and conditions involve the principal loan amount, required for the purchase of the house and the rate of interest is calculated on the principle amount.Kinds of Home Mortgage Financing:
Home Mortgage Financing is carried on with the help of two systems, that include:- Fixed Rate Mortgage
- Adjustable Rate mortgage
Repayment Procedure of Home Mortgage Financing:
The procedure of repayment of home mortgage loans has been simplified by providing the borrower with a number of choices for repayment. The most common among the repayment plans is the capital and interest repayment procedure which lies in contrast to the special repayment plan i.e. no capital or interest repayment procedure. Another variation to the said repayment plans is the interest only repayment plan, that does not require the repayment of the capital amount. Provisions have been made where the payment of the total interest amount is required and but the partial payment of capital amount can be done.Home Mortgage Financing Companies in India:
Home mortgage financing is currently carried on by both the public sector as well as the private sector, the public sector institutions include the Indian banks like the State Bank of India, the Life Insurance Corporation's Housing Finance Limited. The significant private sector home mortgage financing include popular banks like the Industrial Credit and Investment Corporation of India Bank, Housing Development Finance Corporation, Citibank, Standard Chartered Bank, HSBC and so on.Last Updated on 5/26/2011
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