A home loan is an ideal way to finance the purchase or the construction of the residential property. On the other hand, a Mortage loan has no restriction on the loan amount usage. The main difference between home and mortgage loan makes it clear that both of them is ideal for their own purpose as per preferences. If you are the one searching for Buy Home Near Me then, you should know the key differences between Home and Mortgage Loan.
Move ahead with the facts to understand the difference between Home and Mortgage loans. Both of the loans might sound the same but they are different from each other.
- The Home Loan purpose is only ideal for the construction of the new home or purchase of property that is ready for the recipient to move in.
- The ratio of loan-to-value of home loans is high. The recipient can get a loan of up to 90% of the market value of the property. Apna Ghar Khoj will provide the best property’s market value
- The home loan interest is lower than the mortgage loans
- The home loan processing fee commonly varies from 0.8% to 1.2% of the loan value
- The repayment tenure of a home loan is one of the longest is 30 years and is offered to the recipient
- The recipient has the liberty to use the money any way they want to with the Mortgage Loans. There are no such restrictions on the way that loan money should be used. The recipient can use the money towards any expenses that are related to home or to fulfill personal necessities.
- Unlike Home Loan, the loan-to-value ratio with mortgage loans is low. So if you are searching for Buy Home Near Me then, you can get a loan of up to 60-70% of the market value of the property under this loan.
- The charge of interest rate on Mortgage loans commonly ranges 1% to 3% higher than the home loans
- The processing fee of mortgage loans is also higher than Home Loans. Lenders commonly charge approximately 1.5% of loan value as the processing fee.
- The repayment tenure of Mortgage loans is offered up to 15 years
- The beneficiary also can get the top-up facility where one can get extra funding even on the existing loans. There will be no extra paperwork.
You might need a loan for various reasons but with the different home loan products in the market. With Apna Ghar Khoj professionals, the recipient can easily get the best residence as per their budget. You can even choose a home loan if you want to finance the construction or purchase of the residential property.
Apna Ghar Khoj will offer the best residences at the best affordable rate as per your requirement. The professionals here say that home loans can’t be used for any other purpose. So, if you have some other requirement then, a Mortgage Loan is best for you.