Home Loans & Mortgage Loans Better Understood (Part-1)

In our first post on the above series, we shall be looking at Home Loans and Mortgage loans more from the Indian perspective, understand a bit of different interests rates available in the market and how banks service

 

Mortgage Loan – Definition

Mortgage loan generally refers to the loan secured by pledging an already existing home for financial needs. This definition is purely in Indian context. In India Home loans are for purchasing a new home where the disbursement of the loan amount is made in full by the financier / banks or for constructing new home where the disbursement is released in stages by the financier / banks vis-à-vis the progress made in the construction.

Typically in western countries Mortgage loan generally refers to all types of Home loans. According to Anglo-American property law, a mortgage occurs when an owner pledges his or her rights to the property, as a collateral to the loan.

As like any other loans, mortgage loans and / or home loans comes with interest rate and the payment is by generally EMI as per the amortization schedule spread over a repayment period ranging from 20 years to 30 years depending on the policies of the financier / bank that provides with the loan.

Now let us see some popular terminologies used in the financial circle when dealing with mortgage or home loans;

 

Property : The physical residence being financed in question here refers the property.Borrower: The person borrowing the loan in exchange to mortgaging his / her interest on the property who in other words is either having or is creating an ownership interest in the property is called a Borrower.

Lender : Usually a bank or other financial institution qualifies to be called a Lender. Typically In India, lenders can also be individuals who lend money. In America, lenders may also be investors who own an interest in the mortgage through a mortgage-backed security. In such a situation, the initial lender is known as the mortgage originator, which then packages and sells the loan to investors. The payments from the borrower are thereafter collected by a loan servicer.

 

Principal: The original size of the loan, which may or may not include certain other cost refers to the Principal Amount. As and when principal amount is repaid in parts, the principal will go down in size and the loan interest is calculated for the remaining Principal amount only.

 

Interest: A financial charge for use of the lender’s money is referred as Interest. There are many different varieties of Interests employed by bankers. We shall discuss them elaborately in our next post.

Foreclosure or Repossession: The possibility that the lender has to foreclose, repossess or seize the property after paying the principal along with the applicable interest and other charges if any is essential to any mortgage loan.

Essential Tips If You Are Buying A Home in Chennai For The First Time?

Buying a home in chennai can be an incredible experience. When you realize what a big purchase you are making, and how you are literally going to have to live with it, it can be quite intimidating. Making a decision is a very important process, and you want to make sure you take everything into consideration. Nobody wants to end up with a bad house with leaky pipes that’s in a bad area of town. Of course, if you do your homework, this isn’t likely to happen. What’s likely is that you’ll create a good space for your family to grow up in, and create some great memories.

Also, unless the whole economy totally collapses, you’ll stand to make quite a bit of money on your house. However, if you are buying a house for the first time, then there are some things you need to keep in mind. Things you’ll learn about in this article.

Before you go out looking, check out and see how much of a loan you qualify. This will help you from trying to buy a house that is out of your range. Just check out your local bank, tell them what you have in mind, and see how much of a loan you qualify for. This will give you a good idea when you are looking around.

Of course, you’ll need to get a real estate agent . But instead of picking one out of the phone book, do some research before you choose. Check out there background, their credentials, and how long they’ve been in the business. Any decent real estate agent should have plenty of references.

If you are planning on having kids in the future, make sure the house you are buying has enough space. You don’t want to have to move later on when you’ve got a few kids in tow, as this can get pretty expensive. It’s better to think about the future when you are planning on buying a home.

It can be tempting to buy foreclosures, since they are so cheap, but they will require an incredible amount of work. You’re going to have plenty on your plate as it is, you don’t want to have to worry about fixing plumbing or leaky ceilings.

Buying your first home is a great experience. Just make sure to take your time and enjoy it. Follow these steps, and you shouldn’t have any problems.

Further Details : Chennai Flat Promoters

Tips for kitchen interiors

In this section of the post let us see some more tips to make your kitchen look neat and beautiful.

 If the kitchen of apartment that is being newly built is smaller or medium in size, ask your Chennai flat builder to use vitrified tiles to be in lighter shade. This appropriate color selection helps in creating a condition where your kitchen would not seem cluttered and small but appear big.

 On the same scale, if your flat in Chennai is being built newly and the kitchen is spacious, ask your Chennai flat builder to use vitrified tiles in two colors, preferably black and white resembling a chess board. This alternating color gives the kitchen a contemporary classic look.

  Ensure you provide electrical points for all possible kitchen appliances you could think of. It is advisable to have two additional points in case you may want to connect any future gadgets. Builders in Chennai generally have enough idea on this and the same has to be ensured by the flat owners.

 If your kitchen is rustic designed then try to use Stainless steel railings and other SS modular materials that gives a rustic appearance. Your Chennai flat builder should know where these materials are available and can be a one point contact that can be of good help.

  There is an increasing tendency to use just the glass without any wooden railings as doors to the modular cabinetry. Though this measure decreases the price, the durability of the doors are questionable as the glass breaks easily. So if glass is used in the door try to enclose the same in wood. This also increases the aesthetic appeal of the kitchen.

  The vent from the electric chimney which is generally made of aluminum tube, should not penetrate out and should be well concealed inside the kitchen cabinetry.

  Provide some open plate stands made of glass which is of 8-12mm thickness. On these stand alone stands decorative jars and other decorative items can be displayed to increase the aesthetic look of the kitchen.

 The kitchen top and other structures where kitchen work needs to be carried can be made of fine granites. Well polished granite stones are durable and look better with the water flow marks. Wastes and stains can be easily removed from the granite top than kadappa tops. These days all Chennai flat builders use only granite as tops and so this point is generally taken care of.