Types of Mortgages

by

Sarika Dusane

Though only the word mortgage is used commonly, it actually refers to mortgage loan. One of the ways to obtain a loan is that the home owner can get it against his property from any financial institutions like bank. The following mentioned are the types of mortgage loans used in India only.

Types of Mortgages in India

Before moving on to the types of mortgages, it is necessary to understand the commonly used phrases of mortgage. As mentioned above, mortgage is a loan obtained against a property. The person who applies for a mortgage loan is known as mortgagor and the institution that gives the loan is known as the mortgagee. Banks, builders in Pune or other top real estate developer in Pune etc provide the below mentioned types of mortgage. Let us now move on to the types of mortgages.

English Mortgage: This is the type of mortgage wherein the mortgagee gets the absolute possession of the property, for a specific period of time. The mortgagor gets the possession back only when he pays back all the dues. The mortgagee has the right to make improvements on the land, and any additional costs or increments will be borne by the mortgagor.

Usufructuary Mortgage: In this kind of mortgage the mortgagee has the possession of the property and is also entitled to receive income from rent, profit, interest and so on; as the repayment of the interest, until the mortgage deal is complete. This deal holds true only until the mortgagor repays the loan.

Simple Mortgage: As the name suggests, a simple mortgage is based on a simple principle. Unlike usufructuary and English mortgage, the mortgagor has the possession of his mortgaged property. A mutual agreement takes place between the mortgagor and mortgagee through which the mortgagor agrees to personally pay the loan back and agrees that in case he fails to pay back as per the contract; the mortgagee has the right to sell the mortgaged property for the payment of the mortgage-money.

Anomalous Mortgage: This type of mortgage is a combination of different types of loan mortgages. It is not a simple mortgage, it is a conditional mortgage.

Mortgage by Conditional Sale: There are certain conditions of a mortgage conditional sale as follows. 1. If the mortgagor fails to repay the loan money before the pre-decided day, the sale will becomes absolute. Or 2. The sale will become invalid. Or 3. The mortgagee will retransfer the property on condition of such repayment.

The above mentioned were the major types of mortgages in India. As mentioned above builders in Pune have tie-ups with banks to provide loans against properties. So make it point to take the loan from reliable sources like the

top real estate developers in Pune

or elsewhere.

Sarika is associated with Vascon Engineers one of the

top ten builders in Pune

. Her area of expertise includes buying and selling of real estate Commercial, Residential,

Flats in pune

.

Article Source:

ArticleRich.com