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Home loan, the boom in economy will certainly benefit the masses a lot. A whole new flood gate of opportunities will open up for the people in general. Banks and financial institutions will readily make finances or mortgages available and borrowers will bank on these mortgages to fulfill their dreams. Banking on the situation, most of the individuals will avail home loans that provide mortgages which in turn enables these borrowers to move in to their dram abode.

With scarcity of real estate property and the rising prices, most of the people prefer to purchase a ready to move in home. To buy these homes, mortgages are required which can be sourced from traditional financiers as well as financiers based in the online market. But before availing the home loans it is better to know the present market value of the property along with the cost of the home the borrower is intending to buy. Home loans are actually collateral based secured loans.

To obtain the home loans, mortgage applicant can place the home as collateral with the financiers. Pledging of the asset does not imply that the property rights are with the financiers . Borrower is free to move in and stay. By paying the entire home loan amount, borrower can get back the ownership rights of the home. These home loans have a distinct advantage over other loans. Because the amount offered is of greater value, which is actually based on the equity value of collateral. The repayment duration is also beneficial which is extendable up to 25 years. So a borrower can distinctly use the time to repay the entire mortgage without facing any difficulty.

The interest rates for the loans are offered in two forms. They are

• Fixed rate: - here the interest rate remains fixed for the entire repayment duration.

• Variable rate: - here it is more like gamble for the borrower. Depending on the trend of the market, borrower has to pay the interest rate. Home loans have redefined the way of borrowing. With flexible terms and conditions, it provides an optimal solution for the borrowers by offering easy mortgages to fulfill their need of purchasing a home.