What is a Mortgage?
Mortgage means a legal agreement to borrow or carry off a loan from a bank or any financial organization with some fixed interest by taking the title of debtor’s property ( home, jewel,land) with some conditions, to fulfill their emergency or personal needs.
How does Mortgage calculator work?
Mortgage calculation depends on various inputs like type of loan i.e.,home loan,property loan,etc.,
- Interest Rate – Interest rate varies depending on type of loan, which bank or financial organization you borrow money from.
- Interest Type-two primary interest types are fixed or flat interest rate and variable or reducing interest rate.In fixed or flat interest rate,the interest rate is stable throughout the repayment.In variable or reducing interest rate the interest rate is variable or reducing during the repayment.
- Term or Period of Loan Repayment– How long do you take to repay the borrowed loan amount
- How many Repayments in a year-Some banks or financial organizations avail the option repaying the amount monthly, two month once and annual payment for debtors according to their income and affordance.