What is Mortgage?
Mortgage can be defined as an authorized contract between the borrower and the Moneylender. Mortgage is a process where the lender (A Bank or any other Firm) is secured for the debt which was sanctioned to the borrower. Mortgage is a legal process where it authorizes the Moneylender to sell or occupy the property when the borrower fails to fulfill the contract. In common language Mortgage is legal contract which secures the Bank or Lender during the term of the loan or debt from the borrower.
- Mortgage can be a debt between the borrower and the lender.
- Mortgage can be a legal contract between the borrower and the Bank.
- Mortgage can be a deed between the borrower and the Moneylender.
- Mortgage can be a title between the borrower and the Banker.
- Mortgage can be pledge between the borrower and the Loan issuing Company.
- Mortgage can be a homeowner’s loan taken from any Bank or Moneylender or Loan Company or any Lender.
Where is this Mortgage used?
When anyone who intends to take a home loan or mortgage loan or any other loans then, in such cases the term Mortgage plays an important role. For example while taking a home loan from a bank or any other Moneylender one have to Mortgage their property or home or flat to the Bank or any other Moneylender. I.e. here in this example the borrower who is taking the loan or debt from the Bank or any other Moneylender must give a real security it may be a property or home or flat to the Bank or Moneylender. Whatever the property mortgaged by the borrower to the Bank or moneylender secures the Bank or Moneylender during the term of the loan or debt.
What is meant by Collateral?
Collateral is a pledge between the borrower and the loan issuing company or a Bank or any Moneylender. Collateral is an oath between the borrower and the Bank or any Moneylender on a definite property of the borrower to secure the repayment of the debt or loan to the Bank or any Moneylender.
What is a Mortgage Calculator?Sponsored Links
Mortgage Calculator is an electronic device which facilitates the people to persuade monthly repayments of a mortgage or loan. Mortgage Calculator enables the users to determine their eligibility on their own for getting a home loan or any other mortgage loans. Apart from knowing the eligibility of getting the loans, Mortgage Calculator helps the users to know their number of repayments for the loan which they are willing to take or already taken, the rate of interest they are paying for their home loan or any other mortgage loans. Mortgage Calculator helps the people to determine their eligibility for getting a home loan or any mortgage loan.
Mortgage Calculator Uses:
The Mortgage calculator has a number of uses for example:
- Anyone who intend to take a home loan or any other mortgage loans, depending on their property value and their annual income they can calculate their eligibility for getting the loan on their own by using the online mortgage calculator.
- By using the Online mortgage calculator, anyone from any part of the world can know or determine their monthly EMI which is affordable for them or not.
- By using the Online mortgage calculator, people who are willing to take a mortgage loan or home loan or any other loan can check which bank is offering loan at low rate of interest and they can choose the best loan opportunities on their own.
How to Use a Mortgage Calculator online in a Simple way?
Here we are giving some simple tips to use the Mortgage Calculator in a simple and easy way. To use the Mortgage Calculator first you have to know or decide the Principal amount, second thing is the term or period or duration of the mortgage or a home loan or any other loans, third and the last thing is Interest rate. By using these three things you can simply calculate the monthly payment for the Mortgage or loan, Total repayment and the total interest which you have to pay for the mortgage during the term.
Simple Procedure for Using a Mortgage Calculator Online:
- Enter the Mortgage amount or Loan amount or Total amount which you are willing to take from the Bank or any Moneylender in the Total Amount field.
- Enter the repayment or EMI in the Down Payment field.
- Enter the rate of interest which was prescribed by the Bank or Moneylender in the Interest Rate field.
- Enter the term or duration or period for which you want to repay the Mortgage or home loan or any other loan in the Authorization Period field.
- Enter the Payment period or select the payment period from the list of Payment Period Field.
- After entering all the above mentioned details in the specific fields and click the Calculate Button, then the Mortgage Calculator will display the following things depending on the selection of Payment Period:
- Monthly repayment or monthly payment of the mortgage or loan.
- Bi-weekly repayment or monthly payment of the mortgage or loan.
- Weekly repayment or monthly payment of the mortgage or loan.
How to Calculate Mortgage Manually?Sponsored Links
Before the existence of the Mortgage calculator, there is a formula by using that formula people used to calculate. By using this below mentioned formula anyone from any part of the world can calculate the number of repayments and their eligibility for getting the loan or mortgage and the rate of interest etc. For using this formula you can choose the principal amount how much you are willing to take as a loan, depending on the rate of interest and principal amount you can calculate the number of payments and the amount to be paid on every month.
In the above formula, where
M – Is monthly payment.
P – Is Principal amount.
r– Stands for Rate of Interest.
n – Stands for number of payments.
Simple Procedure for Calculating the Mortgage Manually:
- Substitute the Mortgage amount or Loan amount which you are willing to take from the Bank in ‘P’.
- Substitute the rate of interest which was prescribed by the Bank in ‘r’.
- Substitute the number of payments or repayments in ‘n’.
- After substituting the Principal amount in ‘P’, rate of interest in ‘r’ and number of payments in ‘n’ in the above formula, you can get the ‘M’ is the monthly payment which you have to pay for the Bank.
The total sum of the money borrowed by a person from the Bank or any Moneylender for which the borrowed individual pays the interest.
Interest is a monthly payment from the borrower to the Bank or any Moneylender towards the debt which has taken by the borrower from the Bank or any Moneylender.
Interest may be the repayment of Principal amount which is borrowed by an individual from Bank or any other Moneylender at a particular percentage which is also known as Rate of Interest or Interest Rate.