The legal contract which ensures a loan to a person or a lender, granted by an authorized bank keeping his or her property in the form of security is known as mortgage. Then the person has to repay the loan along with interests and some other costs and with the repayment, the contract comes to an end. By any chance if you are not able to repay the loan, the bank will sell the property kept as security to compensate the debt. You can go to any professional, experienced in this field for mortgage scenario questions and mortgage scenario answers. Here are some advantages of mortgage which you can consider if you are unsure whether to apply for mortgage or not:-
· Capacity to Purchase:-The cost of real estates has increased a lot recently and people with a limited income are finding it impossible to purchase a property. Here, mortgage comes to rescue and increases the capacity of purchasing a property of such people.
· Cost Effective: - the mortgage loan is approved by the bank against a particular property of yours kept as security. So, the lender has got no worry even if he cannot repay the loan. If such thing happens, the lender will still have a property which he can sell out to cover the debts. Also, the rate of interest on the mortgage loan is comparatively low.
· Tax Benefits:-If you avail a mortgage loan, you will be qualified to get income tax benefits. The amount which is to be paid to the government is reduced and the money paid as interest is sometimes excluded from the amount of tax.
The method of repayment is easy for mortgage loans; you do not need to pay in one time rather you can pay it as monthly installments.