Mortgage in real estate

[Toyoabasi]

A mortgage is a loan provided by a mortgage lender or bank that enables an individual to purchase a home. These loans must be paid back overtime. The home purchased acts as collateral on the money an individual is lent to purchase the home. Most times individuals are allowed to loan upto 80% of the total value of the house.
Types of mortgages
There are basically two types of mortgages, they are as follows
1. Fixed rate mortgage
This is the kind of mortgage whose loan repayment interest is fixed, let's say there is a 20% interest on the loan, one will need to pay that fixed interest till the loan payment is finished. They normally lasts for 10, 15 or 20years repayment plan.
2. Adjustable mortgage rate
This type of mortgage utilities a changeable interest rate on the mortgage, the disadvantage of this is that your interest rate may go so high that you may not be able to pay up whereby your loan will go through a process known as foreclosure where your loaned house will be taken back from you.
Do you have a mortgage? Do you think mortgage is a good way to have a home?

Thanks for sharing the knowledge.
I do not have a mortgage, but I consider it a good way to have a home. You have to ensure you follow through with the mortgage obligations to avoid problems.

 

[eLdavis]

A mortgage is a loan provided by a mortgage lender or bank that enables an individual to purchase a home. These loans must be paid back overtime. The home purchased acts as collateral on the money an individual is lent to purchase the home. Most times individuals are allowed to loan upto 80% of the total value of the house.
Types of mortgages
There are basically two types of mortgages, they are as follows
1. Fixed rate mortgage
This is the kind of mortgage whose loan repayment interest is fixed, let's say there is a 20% interest on the loan, one will need to pay that fixed interest till the loan payment is finished. They normally lasts for 10, 15 or 20years repayment plan.
2. Adjustable mortgage rate
This type of mortgage utilities a changeable interest rate on the mortgage, the disadvantage of this is that your interest rate may go so high that you may not be able to pay up whereby your loan will go through a process known as foreclosure where your loaned house will be taken back from you.
Do you have a mortgage? Do you think mortgage is a good way to have a home?

To answer the first question, no I do not have a mortgage, and I do not plan too at the moment. I believe mortgage has it's advantages cause I have seen persons who though they have the money they still opt for mortgage.

 

[Heatman]

To answer the first question, no I do not have a mortgage, and I do not plan too at the moment. I believe mortgage has it's advantages cause I have seen persons who though they have the money they still opt for mortgage.

As far as I'm concerned I don't really consider mortgages in Nigeria because our banking system is always very difficult and always favouring a certain set of people.

 

[eLdavis]

As far as I'm concerned I don't really consider mortgages in Nigeria because our banking system is always very difficult and always favouring a certain set of people.

Thats just the major problem when it comes to Nigeria. Have you ever seen anything be it law or whatsoever that have been put in place to favour everyone? Every single thing they do is just to favour a particular set of persons or groups.

 

[Heatman]

Thats just the major problem when it comes to Nigeria. Have you ever seen anything be it law or whatsoever that have been put in place to favour everyone? Every single thing they do is just to favour a particular set of persons or groups.

Seriously you have a very good point because ever since I've been a citizen of Nigeria the country has always favoured those that are rich and not every other average citizen in the country.

 

[eLdavis]

Seriously you have a very good point because ever since I've been a citizen of Nigeria the country has always favoured those that are rich and not every other average citizen in the country.

It's quit sad honestly, even our younger generation now sees this as totally and completely normal, even in our local stores once they see you have a car, they would attend to you first before the other person, even when it's obvious they came in first.

 

[Heatman]

Ok

It's quit sad honestly, even our younger generation now sees this as totally and completely normal, even in our local stores once they see you have a car, they would attend to you first before the other person, even when it's obvious they came in first.

This is something that has been going on in the country over decades right now and I'm not sure anything can be done about it rather than what a lot of youths are doing right now by jumping into cryptocurrency and making money for themselves.

 

[eLdavis]

Ok

This is something that has been going on in the country over decades right now and I'm not sure anything can be done about it rather than what a lot of youths are doing right now by jumping into cryptocurrency and making money for themselves.

True crypto currency might be a way out especially as there are no employments out there but even with this, the government is still against it.

 

[HayKay]

In my country, this idea exists but isn't that viable. I'll have really loved to own a home this way because it's almost like a guarantee and the mortgage fee isn't prone to inflation - you pay the same rate you agreed on at the initial stage.

 

[Kubiat-Abasi]

Using a mortgage to purchase a property is actually not a bad idea but personally, I don't subscribe to it because it feels like a whole lot of pressure. I prefer to buy cheap lands and invest or flipp.

 

[Mayox25]

Mortgage is the most important aspect in real estate. This is the means through which many people can have access to funds to own their own house. If it can serve many people then it will address the issue of housing deficit.

 

[Nomad]

Mortgage can come in handy if you do not have enough funds to buy real estate properties. However, you still need some money to make a downpayment. In order to access mortgage, you also need regular income source and your income must be more than your expenses so that you can pay your mortgage fees regularly.