FAQ- Ask our Mortgage-calculator Experts

Q. What is the usual length of a loan?
For first time borrowers the usual length is 25 years. While the usual term available for this kind of loan is 15 years or 30 years.

Q. Why take a loan when I meet my needs with cash?
A loan is able to maintain cash and liquidity. There may be better conditions available with the lender. There might be lower interest rates applicable as compared to the value of the property. A tailor made mortgage may end up to be more cost effective than the cash expenditures. It is better to preserve cash to meet the contingencies.

Q. How does my personal credit history affect my chance of getting a mortgage loan?
Personal credit history shows all your past credit events. The lenders use your personal credit history to analyze the level of risk in sanctioning a loan to you (especially in the case of sole traders and partnerships). The late payments or bankruptcies in the history are danger areas and may hinder your credit process. For this you should include a letter with your application explaining the circumstances for the same and how they have changed now and your eligibility for the present loan. The letter may wash the black spots on your credit history but it should be well supported by documents. Be honest in your approach towards the lenders as they are the experts and can easily trace the loopholes.

Q. How can I improve my chances of getting a mortgage loan?
Throughout the loan process it is most important that what kind of you have on the lender. The borrower must be prepared to demonstrate why you are the right candidate for the loan. You must also prove that you are capable of repaying the loan. Show the lender your history of earnings and the strong future earnings. A larger investment in the business will be an added advantage for you as the lenders feel secure that your interest is aligned with its.

Q. Who is responsible for the repayment of the loan?
The legal structure of your company as well as the terms and conditions of the loan will determine who is responsible for the repayment of the loan and who will be liable if it is not repaid. If you are a sole borrower, you will have to bear all the responsibility and potential liability. If your have formed a partnership, all of the partners involved are jointly and individually responsible. If you a legal company, the Directors may be liable if the loan is not repaid.

Q. How mortgage loan calculator helps?
The mortgage calculator can display the interest rate, the amount of loan, the type of type of interest rate and the length of time you are planning to borrow the money for. For example we can calculate the monthly payment amount for a scenario like
Borrowed amount: $150,000
Interest Rate applicable: 6%
Term: 30 Years
If you input this information in the mortgage calculator the resulting amount will be $899.33 per Month.