What is a Home Loan?
Home Loan is a secured loan. It is the purchase of a property by offering it as collateral. Home loans offer interest rates and long tenors. The property title is transferred to the people, after repayment. When the sale of the property the borrower can not pay the amount then the lender processes the legal rights to recover the loan amount.
How many types of Home loans?
Home loan is 8 types.
1. Home purchase loan – Taken to Purchase a home.
2. Home improvement loan – Taken to improve and repair a home.
3. Home construction loan – Taken to make a new home.
4. Land purchase loan – Taken to buy a plot of land.
5. Home extension loan – Taken to another floor, room, and many more.
6. Joint home loan – Taken to add two more people.
7. Home loan balance transfer – This allows people to switch lenders and transfer their outstanding loan amount to enjoy better terms and conditions and lower interest.
8. Top-up home loan – Allow to people borrow funds above the outstanding loan amount at nominal rates and for any purpose.
How many Types of Home Loans Interest Rates?
Two types of home loan interest rates.
- Fixed-rate of interest →