The Things To Know About

Mortgages While Buying a House

As we all know whether we are buying a house for the first

time or we are doing it for the fifth arranging finance is never

easy.

If you are not an investor and just a buyer then of course

acquiring a loan is your first available option for arranging the

money to buy your house.

If you want to 3 BHK apartments in Ghaziabad you will need to

get a mortgage as the prices of the property here are premium.

Thus it is necessary that you know in detail about what a

mortgage is and what other aspects are related to it.

As of course the amount will be significantly high it is

important that you know how the mortgage works.

DEFINING MORTAGAGE:

The most basic definition of mortgage is that it is a loan taken

from a bank at some interest to buy a property. For getting a

mortgage the approval of the lender depends upon your

income level, credit rating and other debts if you have like may

be personal loans, vehicle loan or education loan on your

name.

KNOW EXACTLY WHAT YOUR FIXED COST IS :

Fixed costs you will account your total budget you require for

living and only then you can decide how much installment you

can pay every month. So, before you decide what you can or

what you should—spend on a mortgage always calculate your

fixed cost.

Be honest with yourself as the loan for your house would be a

long term commitment. In calculating your fixed cost it is also

important that you know and consider about your daily habits

like you have a habit of eating out a lot or you ca ’t do without

your daily premium cup of coffee or if you are a shopaholic. All

these thing should be counted in your fixed cost.

CALCULATE YOUR PITH AMOUNT AND ALWAYS PLAY SAFE :

According to experts your monthly housing cost should not be

more than 32% of your gross monthly income. As you will be

required to pay off your PITH or Principle, Interest, Property

tax and Heating bills every month so always calculate them and

then make you spending budget to play it safe.

ONLY GET, WHAT YOU CAN AFFORD:

If you do not want to turn your dream house into a nightmare

always get mortgage that you can pay-off easily.

After calculating and passing the PITH test, now you need to

clarify what you can afford after paying of your car payments,

credit card debts and any other such mortgage that you have

already taken.

Your entire o th’s debt load should not exceed 40% of your

gross monthly income. If you can only afford 3 BHK

apartments in Ghaziabad then do not go for a 4 BHK.

Paying Off Your Mortgage:

When you have finally approved for a mortgage and bought your

home, now you have to start paying it off.

The factors involved in your mortgage payback structure would

be interest rate, your payment schedule and your payment period

or amortization period i.e. the amount of time you’ve selected to

pay back the mortgage.

CHOOSE THE RIGHT INTEREST RATE:

Interest is what percentage the lender charges you for

lending the money. In other words the interest rate is

which you select to pay off your mortgage.

Choose a scheme at an interest rate that you can afford. It

will remain fixed for the term of the mortgage, and is

generally a bit higher however the interest rate can

fluctuate with the market.

Mortgages are important for you to fulfill your dream of buying

a house so choose them wisely such that they do not become a

burden on you.