In case, you were thinking about the eligibility requirement to get a mortgage loan, you should check with the requirements listed by the Sun West Mortgage company.
Understanding the eligibility criteria for mortgage loan
In order to be eligible for mortgage loan, you would be required to be salaried or self-employed. You should also be of at least 21 years or older. Other than these two essential and basic requirements, the bank would also assess your total annual income, work experience, income tax returns for the past three years, value of property, and experience with the present company, total number of dependents, present number of loans and liabilities.
The eligibility criterion might be different slightly from one bank to another. You should get a quote from a number of mortgage companies and banks prior to making the decision.
Different ways to repay the mortgage loan
There have been three essential easy to repay the mortgage loan.
- Interest only mortgage loan
When you opt for interest only option, you would be required to pay the interest amount only. It would be paid during the entire loan tenure and the principal would be returned after that.
- Fixed rate mortgage (FRM)
The FRM would require you to pay a uniform interest rate along with the principal amount.
- Adjustable rate mortgage (ARM)
Under the adjustable rate mortgage, the interest rate would change throughout the repayment tenure. It would be based on market and the economic conditions.
In order to repay the loan, you would be required to return the principal amount along with interest in a stipulated duration that has been agreed upon mutually by both the parties to the mortgage contract. You would also be required to add the insurance costs and property tax to the mortgage loan.
The insurance would be required to safeguard the property against any damage. It would be pertinent that you consider all essentials prior to calculating the EMI